EL Essilorluxottica

   By Cristina Roca 
 

EssilorLuxottica SA said Friday that the guidance it issued three weeks ago is no longer valid due to the coronavirus pandemic, which has forced it to stop production at many of its sites and shut stores around the world.

The Franco-Italian optical company said business conditions started to deteriorate in March, when the virus shifted from affecting mostly China to Europe and North America.

The company expects its second-quarter revenue to further decelerate, and its profitability to take a material hit.

The Essilor side of the business has temporarily closed all its industrial sites in France. Its world-wide network of plants and laboratories are ensuring production continuity, the company said.

All Essilor production sites in China are back to full speed, and e-commerce is growing, the company said.

On the Luxottica side, manufacturing plants have temporarily suspended production in Italy and other locations, but are back to normal in China. The company is complying with orders to close stores in parts of Europe and North America.

EssilorLuxottica is taking measures to control costs and cash, putting on hold noncrucial investments, and adjusting its global capacity to current demand levels, it said.

Write to Cristina Roca at cristina.roca@dowjones.com; @_cristinaroca

(END) Dow Jones Newswires

March 27, 2020 02:31 ET (06:31 GMT)

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