EssilorLuxottica is targeting a recovery in its business this year to levels seen before the COVID-19 crisis after the Oakley and Ray-Ban maker's fourth-quarter revenue showed further signs of improvement.
EssilorLuxottica is suspending its dividend due to the coronavirus pandemic, it said Monday, adding its annual shareholder meeting has been delayed and its Essilor chief executive officer, Laurent Vacherot, has retired.
The new, five-year licence deal between the Italian eyewear group and the French luxury label will start on January 1 2020 and end on December 31 2024, with the option of a 3-year extension until December 2027.
Growing demand for vision correction should boost sales of Ray Bans and other eyeglasses, EssilorLuxottica said on Wednesday, with profits also driven by cost cuts of up to 600 millions euros a year from 2022.
The Italian jeweller’s renewal for a three-year term will be effective on January 1 2021, when the current agreement will expire, and extend to December 31 2023, with a focus on emerging markets, Asia and the USA.
EssilorLuxottica posted higher first-quarter sales and maintained full-year targets on Tuesday, just days ahead of an annual meeting where investors are expected to voice frustration over a leadership row at the firm.
A row over who is in charge at EssilorLuxottica could drag on for over two years after the recently merged group’s executive chairman filed an arbitration request after alleged violations of a power-sharing agreement.