MILAN, Italy — Luxottica Group SpA gained the most in more than seven years after the maker of Ray-Ban sunglasses said sales growth will accelerate in 2017.
Revenue will probably rise by a mid-single-digit percentage next year, chief financial officer Stefano Grassi said on a call with analysts Monday. Third-quarter sales rose 3.5 percent at constant exchange rates, the Milan-based company also said. The stock rose as much as 8.7 percent in Milan, the biggest intraday gain since May 2009.
“We are in full execution mode,” chief executive officer Massimo Vian said on the call. “We are positive since this 2016 is becoming even more a key transitional year.”
Luxottica is undergoing a “major transformation,” according to Piral Dadhania, an analyst at RBC Capital Markets, who highlighted the Lenscrafters chain’s new format and a move to centralise laboratories. The company is investing more than 1.5 billion euros ($1.63 billion) over the next three years on digital, product development and expansion into new markets, responding to expanding demand for eyewear in emerging markets.
The company reiterated that it expects sales growth of 2 percent to 3 percent in sales and earnings based on constant exchange rates this year. That implies that analysts will need to raise their forecasts for 2016 profit by 3 percent to 4 percent, RBC’s Dadhania wrote in a note.
The stock had lost more than a quarter of its value this year before Tuesday’s gain. Luxottica cut its 2016 outlook in July, saying it was becoming more cautious on the second half.
By Thomas Mulier; editors: Matthew Boyle and Phil Serafino.