Costa sunglasses led a 2.6 percent increase in organic sales at Essilor International's Readers and Sunglasses division in the six months ended June 30.
Essilor, which is based in Paris, France, reported revenues at the division reached €362 million ($404 mm) during the period, up 31.3 percent, or 9.5 percent in currency-neutral (c-n) terms. Organic growth was led by Costa, a FL-based brand that expanded its presence in the Northeast and Great Lakes region during the period. The uplift in the prescription sunwear business also added to momentum.
Essilor added the Costa and Native sports sunglasses brands to its portfolio, with its 2014 acquisition of Costa Inc. Bolon, a more fashion-oriented Chinese sunglasses brand, was acquired in a separate transaction the same year. Essilor said Bolon capitalized on its growing brand awareness in the first half to expand its presence in China's large east coast cities, including Shanghai, where it opened two stores. Bolon also gained momentum with major duty-free shops in leading Asian airports. Finally, Essilor began offering Bolon-branded prescription sunglasses to Chinese opticians during the period.
Growth also resumed at FGX International, which distributes reading glasses in North America. The rebound, which Essilor expects will gain momentum in the second half, was led by the start of a new reading glasses supply contract with a leading drugstore chain and by the launch of Foster Grant Multifocus and eReaders lenses two value-added products marketed at premium price points.
At Essilor's flagship Lenses and Optical Instruments business, organic sales increased 22.1 percent (10.1 percent c-n) to €2.95 billion ($3.3 bn). Organic sales grew 4.7 percent.
Barring any additional strategic acquisitions, Essilor confirmed its full-year 2015 targets, which call for revenue to grow 8-to-11 percent excluding currency effects and organic sales growth in excess of 4.5 percent. Operating margins are expected to reach at least 18.8 percent.
