Essilor Luxottica

Francesco Milleri, Chair and CEO of EL, will not replace Leonardo Maria Del Vecchio's position as chief strategy officer and will kick upstairs Chrystel Barranger as Chief growth Officer. Ms Barranger is a well-established manager. More interestingly, Leonardo Maria is now telling the world that Delfin family shareholders will not reappoint Milleri as Chairman of Delfin when the time comes next year. He also says the group needs a new strategy, focusing more on the industrial side than on Delfin's investment strategy around banks. According to him, no one had yet asked Delfin's investors what to do with the stake in Monte dei Paschi and criticized the board of the holding company for alleged opaqueness.

As we wrote last week the moment of catharsis is nearing. About time.

The drop in share price has been nothing short of spectacular, and with a PE of 26 now back to 20.7x (and 19.1x for 2027), valuations are back to acceptable levels. Yet, while EL should definitely be on your radar,  we see no resaon to jump back into the stock at this stage. Competition around smart glasses is fierce and Ray Ban may lose its edge in the near future. Furthermore the consumption environment remains lackluster and the feud at the top of the company is rarely good news. 


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