EssilorLuxottica CEO confident medtech push can drive share price recovery
EssilorLuxottica’s Strategy and Market Performance
By Elisa Anzolin
PARIS, April 28 (Reuters) - The head of EssilorLuxottica expressed confidence a push into medical technology would eventually drive a recovery in the market value of the world's largest eyewear group, after contributing to the sharp drop seen in recent months.
Factors Behind Share Price Decline
Speaking at the group's annual general meeting on Tuesday, EssilorLuxottica CEO Francesco Milleri listed other factors behind the share price fall of more than 40% from record highs hit in November: U.S. tariffs, the weakness of the dollar, spreading military conflicts and competition on smart glasses.
Financial Impact of U.S. Tariffs
Finance chief Stefano Grassi quantified in 300 million euros ($351 million) the impact from U.S. tariffs last year.
Medtech Expansion as a Strategic Transformation
Milleri said investors had not fully understood EssilorLuxottica's expansion into the medtech sector, which he described as a necessary transformation.
Rationale for Diversification
"We were too big to remain ... (confined to) this small market," he said, referring to the group' s traditional spectacle frame and lens business.
Timeline for Recovery
"We are really pushing to go back to the (price) position that we deserve ... but, at the same time, it will take some time to achieve that", Milleri said.
Growth Opportunities in Smart Glasses and Audio Segment
Smart Glasses Market Dynamics
AUDIO SEGMENT SEEN AS A GROWTH AREA
EssilorLuxottica's market value has shrunk to 86 billion euros from 150 billion in November, when it reached a record high thanks to investor bets on smartglasses which EssilorLuxottica develops in partnership with Meta Platforms.
Since then, however, growing competition in the segment has tempered investor enthusiasm.
AI-Powered Glasses as a Strategic Pillar
Milleri said AI-powered glasses remained a key pillar for the group's strategy and played down concerns about rising competition.
"A few big players have made product announcements generating buzz, but we haven't seen any real competing products on the market so far," he said.
Audio Segment and Hearing Assistance Products
He pointed also to the audio segment as a major growth area for EssilorLuxottica, with new products beyond Nuance Audio glasses, spectacles that incorporate hearing assistance for people with mild to moderate hearing loss.
Potential Investments in Hearing Aid Market
Speaking to reporters on the sidelines of the meeting, Milleri said EssilorLuxottica had even weighed a possible investment in Italian hearing aid maker Amplifon , but had not pursued it.
($1 = 0.8551 euros)
(Editing by Valentina Za and Mark Potter)
