EssilorLuxottica falls on expected strong tariff hit

Shares in EssilorLuxottica ESLX.PA fall nearly 5% to the bottom of France's SBF 120 index .SBF120, as it is set to take a strong hit from the new U.S. tariffs

J.P.Morgan says sporting goods companies are "likely to be hit hardest" in its coverage, and points to the Ray-Ban maker's high U.S. exposure vs minimal sourcing in the country

JPM sees material double-digit pct negative impacts at EBIT level for those companies

"We would expect all companies under our coverage to respond to this announcement with price hikes in the US, as most had already anticipated in recent months," the analysts say

Impact from tariffs might not just be on margins, but possibly also on short- and mid-term underlying demand, JPM adds

EssilorLuxottica's shares are on track for their worst day since December 2022