EssilorLuxottica warns On Q2 revenue, withdraws FY20 outlook due to COVID-19

French ophthalmic company EssilorLuxottica SA (ESLOF.PK, ESLOY.PK) Friday said it recorded solid growth in the months of January and February, in line with its full year targets. Due to the evolving coronavirus or COVID-19 pandemic, the company said its outlook for fiscal 2020 is no longer valid.

In its trading update, the company noted that business conditions began deteriorating in March as the virus shifted from impacting predominantly China to entire regions of Europe and North America.

During the second quarter, the company expects revenue to further decelerate with a material impact on profitability.

Essilor has temporarily closed all its industrial sites in France. Meanwhile, there is production continuity with its worldwide network of interconnected plants and laboratories, including all production facilities in China.

Further, e-commerce activities are growing with no back orders.

Luxottica's manufacturing plants have temporarily suspended their activity in Italy and other smaller locations, while they are back to normal levels in China. Stores in Europe and North America are in temporary lockdown.

EssilorLuxottica and the two operating companies are implementing a contingency plan including cost and cash control measures.(DPA)