EssilorLuxottica SA posted better-than-expected revenue in the second quarter, as the world’s biggest eyewear maker showed strong gains in Europe and pressed ahead with its smart-glasses initiative.
Revenue increased 7.3 percent at constant exchange rates to €7.18 billion ($8.36 billion) for the period, the worlds’ biggest eyewear maker said Monday in a statement. That beat analysts’ estimates for a 5.9 percent rise, based on a Bloomberg-compiled consensus.
Europe powered the increase, while results in North America were held back by tariffs and a falling dollar. Sales of Ray-Ban Meta smart glasses more than tripled in the first half, as EssilorLuxottica accelerated its smart glasses push.
This year, the French-Italian eyewear maker has introduced its hearing-enhanced Nuance Audio line and announced Oakley Meta, which adds sportswear to its collaboration with Facebook parent Meta Platforms Inc. While raising costs, the results show more customers are opting for wearable technology.
“We expect a very fast ramp-up” of Oakley Meta, chief executive officer Francesco Milleri said in a conference call. “We believe it can match the numbers of Ray-Ban Meta.”
Milleri also signalled plans to launch other new products and said the company will increase production in Thailand to supplement capacity currently targeted at 10 million pieces by the end of 2026.
For Meta, the fast-growing segment offers the US technology giant a chance to build its own hardware and control distribution, chief executive officer Mark Zuckerberg has said. Meta acquired just under 3 percent of EssilorLuxottica, Bloomberg News reported this month.
American depositary receipts of EssilorLuxottica narrowed earlier losses following the results. The stock has advanced 4.5 percent this year in Paris, trailing the 8.1 percent rise in the Europe’s Stoxx 600 index.
US tariffs remain an issue for the company, which also owns the LensCrafters and Sunglass Hut chains. Adjusted gross profit margins fell 90 basis points in the first half from a year earlier.
Price increases in the US and “manufacturing and distributing from the most efficient locations” will help support margins in the second half, chief financial officer Stefano Grassi said, adding that “July started well.”
Better pricing helped EssilorLuxottica to counter the impact of tariffs and currency fluctuations in the first half, the company said. Acquisitions of Supreme fashion brand and the Heidelberg diagnostic solutions businesses also buoyed results.
EssilorLuxottica confirmed its outlook for mid-single-digit annual revenue growth through 2026, at constant exchange rates and adjusted operating margins in the range of 19-20 percent of revenue.
The company has also pressed ahead with acquisitions in the medical technology sector, one of the key pillars of the company’s growth plan.
This month, the company agreed to buy assets from South Korea’s PUcore to develop monomers used in contact lenses. In May, it made a deal to acquire ophthalmology group Optegra, which operates more than 70 eye hospitals and diagnostic facilities in Europe.
By Antonio Vanuzzo and Flavia Rotondi
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