EssilorLuxottica Delivers Resilient Growth in Q3 Even As North America Slows; Shares Fairly Valued

We are maintaining our fair value for wide-moat EssilorLuxottica as the company reported solid third-quarter revenue numbers. Sales were up by 8.2% in the third quarter and 8.8% in the first nine months in constant currency and comparable terms. This compares to 6% in our full-year projections, which we may increase slightly after this strong showing, without material impact on fair value estimates. Shares are approximately fairly valued at current levels. We view EssilorLuxottica as one of the more resilient names in crises, given the high exposure to the optical category (75% of revenue), which is to an extent nondiscretionary.