Ray-Ban glasses maker EssilorLuxottica said it entered the final three months of the year with strong momentum after posting record-breaking quarterly revenue that beat analysts’ expectations. The Franco-Italian eyewear group booked revenue of 6.87 billion euros ($8 billion) for the third quarter, a 12% increase at constant exchange rates compared with the same period a year earlier. Consensus expectations guided for revenue of 6.75 billion euros, according to a Visible Alpha poll of estimates.
The growth rate marks an acceleration from the second quarter, when the group logged a 7.3% increase, excluding currency movements. The three months through September was the group’s best quarter since its formation following the merger of France’s Essilor and Italy’s Luxottica in 2018, Chief Executive Officer Francesco Milleri said. The rise in quarterly revenue was driven by good results in the Europe, Middle East and Africa region, which posted growth of 13% at constant currency, and in North America, which recorded a 12% increase. EssilorLuxottica reiterated its guidance for the long term of mid-single-digit annual revenue growth through 2026 at constant currency, which would result in a revenue range of 27 billion to 28 billion euros. It also targets an adjusted operating margin of between 19% and 20% by the end of that period.

On Thursday, the SMI advanced 1.4 per cent to 12,702 points. Of the 20 SMI stocks, twelve gained and eight lost ground. A total of 25.95 (previously: 24.45) million shares were traded. Nestlé soared 9.3 per cent after the food company reported a revival in growth for the third quarter and announced drastic cost-cutting measures. The new CEO confirmed the elimination of 16,000 of the current 277,000 jobs. Thus, the company aims to save CHF 3 billion over the next two years instead of the previously targeted CHF 2.5 billion. In addition to Nestlé, ABB and, among smaller caps, Docmorris also presented their figures. ABB's third-quarter figures exceeded the consensus estimates calculated by the industrial technology group. Nevertheless, the share price shed 0.6 per cent, having performed well in recent months, so investors probably took profits today. Docmorris' figures were very well received, with the share price jumping 7.4 per cent. The online pharmacy operator had impressed with its growth in the third quarter and the first nine months of the year and confirmed its outlook. In the SMI, Givaudan jumped 2.8 per cent. The fragrance and flavour manufacturer's shares are likely to continue to benefit from the strong sales figures presented on Tuesday. By contrast, shares in the financial sector dropped significantly. Insurers Swiss Life, Swiss Re and Zurich slumped by up to 3.1 per cent. Negative reactions to the figures released by US insurer Travelers may have weighed on the sector.

Europe
European stock markets closed higher on Thursday after the French government managed to avoid two no-confidence motions. The Stoxx Europe 600 index gained 0.7% to 571.66 points. In Paris, the CAC 40 and SBF 120 rose 1.4% and 1.3% respectively. The DAX 40 edged up 0.4%, while the FTSE 100 added 0.1%. FDJ UNITED (-3.5%): The gaming operator lowered its revenue forecast for 2025 on Wednesday after reporting a decline in third-quarter revenue on a comparable basis. OPMOBILITY (+4%): The automotive equipment manufacturer reported on Thursday having secured two contracts with Chinese automaker Chery to produce bumpers in Spain and Brazil starting in 2026. PERNOD RICARD (+4.2%): The spirits group confirmed its outlook for its 2025-2026 fiscal year on Thursday, after recording a decline in revenue in the first quarter, in line with its forecasts. SARTORIUS STEDIM BIOTECH (+9.7%): The pharmaceutical industry supplier lifted its financial targets for 2025 on Thursday following the release of nine-month results that exceeded analysts' expectations.

United States
Fears that unexpected losses might be lurking in the loan portfolios of regional banks sent stocks and Treasury yields lower on Thursday. The Dow Jones Industrial Average fell about 300 points, or 0.7%. The S&P 500 lost 0.6% and the Nasdaq composite slipped 0.5%. The KBW Nasdaq Regional Banking Index slid more than 6% - its worst day since the April tariff chaos - after Zions Bancorp said late Wednesday that it had taken a $50 million charge-off to cover two loans taken out by borrowers facing legal actions. Meanwhile, Western Alliance said Thursday that it filed a lawsuit in August against one of its borrowers, alleging the company committed fraud. The declines on Thursday were broad - all 11 sectors of the S&P 500 slipped - yet losses were particularly concentrated in financial shares. The financial sector fell 2.7%, wiping out all its gains following blockbuster earnings from America’s six largest lenders earlier this week. Chip makers Western Digital, Micron and Seagate all rose between 3% and 5.5%, after Foxconn - the world’s largest contract electronics manufacturer and the main assembler of Apple’s iPhone - indicated it was meeting with OpenAI and Nvidia. Those companies supply components that allow AI to run directly on devices rather than in data centres. Taiwan Semiconductor Manufacturing also reported record quarterly profit before the market open, underscoring demand for the chips that power AI systems. The Cboe Volatility Index, or VIX, which measures investors’ expectations for stock swings, rose more than 19%. Gold futures rose 2.5% to a fresh record of $4,280.20 a troy ounce as investors flocked to safe-haven assets.

Asia
Asian indexes diverged for the Friday trading session. In Japan, the Nikkei 225 lost 1.2 per cent to 47,680 points, weighed down by the strength of the yen. In China, the HSI in Hong Kong and the Shanghai Composite dropped by 1.6 per cent and 1.0 per cent respectively due to the ongoing trade conflict with the US. In South Korea, the Kospi was marginally up.

Bonds
U.S. government bonds rallied, with the yield on the 10-year Treasury note falling to 3.98%, its lowest level in more than a year and its first close below 4% since April. Some analysts said investors are latching onto the earnings and other sources for hints about the economy while the continuing government shutdown stalls the release of more robust economic data.

Analysis
U-blox rating: Kepler Cheuvreux recommends accepting Advent offer – CHF 135
Sulzer target price: Octavian lowers to CHF 180 (195) – Buy
Cicor target price: Research Partners raises to CHF 210 (205) – Hold

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