EssilorLuxottica Faces Tariff Headwinds, Considers US Shift

In a move that could have far-reaching implications for the global eyewear industry, EssilorLuxottica SA is grappling with the consequences of US tariffs. The Franco-Italian conglomerate, which generates a staggering 43% of its revenue in the US, is reportedly considering a drastic measure: relocating part of its production to the US.

This decision comes as CEO Francesco Milleri has made it clear that the company will not be rushed into making a hasty move. However, the writing is on the wall – with US tariffs continuing to pose a significant threat, it’s only a matter of time before EssilorLuxottica is forced to adapt.

Meanwhile, analysts have been scrutinizing the company’s stock, and their verdict is clear: 7 out of every 10 experts are recommending a buy, with an average price target of 280.80 EUR – a whopping 20% higher than the current market price. This is a resounding vote of confidence in the company’s prospects, despite the challenges posed by US tariffs.

In a separate development, EssilorLuxottica’s annual shareholders’ meeting has approved all proposed resolutions, including a dividend of 3.95 EUR per share, with the option to pay in stock. This move is a clear indication of the company’s commitment to rewarding its shareholders, even in the face of adversity.

Key Takeaways:

• 43% of EssilorLuxottica’s revenue comes from the US, making it vulnerable to tariff headwinds
• The company is considering relocating part of its production to the US in response
• 7 out of every 10 analysts recommend buying EssilorLuxottica’s stock, with an average price target of 280.80 EUR
• The company’s annual shareholders’ meeting has approved a dividend of 3.95 EUR per share, with the option to pay in stock