Your Guide to a Summer Investment: EssilorLuxottica

Summer is here, and while the Northern European press is busy warning people about the high temperatures in the South, let’s talk about something different. Here in Southern Spain, where it’s always warm, sunglasses are a must. But did you know that there’s a company that really shines during the summer vacation season? That company is EssilorLuxottica, and today, we’re going to learn why it’s worth your attention.

Meet EssilorLuxottica: The Global Eyewear Leader

EssilorLuxottica might not be a household name, but you’ve definitely heard of the brands it owns. Think Ray-Ban, Armani, Burberry, and Chanel. Yes, that’s all them! EssilorLuxottica recently made waves by acquiring the Supreme brand from VF Corporation for a whopping 1.5 billion dollars in cash. Let’s dive into why this matters.

Supreme: A Brand with a Cult Following

Supreme was founded in 1994 in New York and quickly became a favorite, especially among young people. I remember a trip to London a few years ago with my son, who was eager to visit a Supreme store. We waited in line for over an hour just to get inside! That kind of dedication shows the brand’s strong position in the market and the loyalty of its customers.

EssilorLuxottica’s Market Power and Impressive Financials

EssilorLuxottica isn’t just about cool brands; it’s a major player in the global eyewear market. The company owns over 150 brands and controls 36% of the market in Europe and 47% in North America. Listed on Euronext Paris, EssilorLuxottica boasts a market capitalization of around 85 billion euros. Formed in 2018 from the merger of a French and an Italian company, it now employs 149,000 people. Pretty impressive, right?

Understanding the Financial Numbers

Let’s break down some numbers. This year, EssilorLuxottica is expected to generate 26 billion euros in revenue. Earnings per share? Around 7 euros. With a share price of about 200 euros, that gives us a Price/Earnings ratio of roughly 28. While that might seem high, the market is betting on growth in both revenue and profit in the coming years. And don’t forget the dividend—about 2%, which is quite attractive. Even though the stock price has been rising, EssilorLuxottica remains a solid investment thanks to its strong market position and healthy margins.

What’s Next? Meta’s Interest in EssilorLuxottica

Now, here’s something interesting. There’s talk that Meta might be considering buying a 5% stake in EssilorLuxottica. Why? Well, Meta and Ray-Ban have already teamed up to launch some cool smart glasses. With EssilorLuxottica’s strong brand lineup and market dominance, this could be a big deal in the eyewear industry.

Wrapping It Up

I hope this overview has helped you get to know EssilorLuxottica a little better. It’s a fascinating company with a rich history and an exciting future. Whether you were already familiar with their brands or not, EssilorLuxottica is definitely a powerhouse in the market. If you have any questions or want to learn more about this topic, feel free to reach out. We’re always here to help!