Luxottica: MT buoyant prospects in US
BUY, Fair Value EUR44 (+14%)
Yesterday Luxottica hosted its Investors’ Day dedicated to the US retail which accounted for 48% of group revenue in 2012. Management emphasised the significant growth opportunities due to the 75m undiagnosed people in the US, under-educated consumers and the low penetration of premium products. This potential is promising for the Retail Optical North America (RONA) which should grow by a CAGR of 5% by 2016 to reach USD3bn (or EUR2.3bn) as well as for Sunglass Hut which should post a +17% 2012-16 CAGR to reach sales of approx. EUR1.4bn in NA. As for our Q3 forecast, we maintain our +8% FX-neutral growth as the CEO confirmed that the Q3 results were globally in line with H1 (+7.6%) even if the group will be impacted by a strong adverse FX impact (~6%e).
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