EssilorLuxottica profit beats forecasts, AI glasses and myopia products drive revenue growth
EssilorLuxottica Financial Results and Revenue Drivers
First-Half Profit Performance
MILAN, July 28 (Reuters) - Franco-Italian eyewear maker EssilorLuxottica reported a 15% rise in first-half adjusted operating profit on Tuesday, comfortably beating analysts' expectations, while revenue growth was driven by strong demand for AI-powered glasses and products in its myopia management portfolio.
The Ray-Ban maker made adjusted operating profit of €2.75 billion ($3.13 billion) in the six months to June 30, compared with a Visible Alpha analyst consensus of €2.46 billion.
Factors Behind Profit Outperformance
The company did not provide a detailed explanation for the stronger-than-expected profit performance. In recent weeks, however, some European companies, including Philips, have reported margins ahead of market expectations, partly benefiting from U.S. tariff-related reimbursements.
Revenue Growth and Product Highlights
Second-quarter revenue rose 8.7% at a constant exchange rate, supported by an almost doubling of sales from AI glasses produced in partnership with Meta and a 24% increase in revenue from the myopia portfolio over the same period.
Core Business Performance
The company said its core eyewear and eyecare business, which accounts for the vast majority of revenue, delivered mid-single-digit growth during the period.
Revenue Figures and Analyst Expectations
Revenue came in at €7.7 billion, slightly below analysts' expectations of €7.8 billion, according to the Visible Alpha consensus.
Market and Product Developments
Share Price and Market Sentiment
Shares in the group have nearly halved from their mid-November peak amid concerns over the smart glasses outlook, profitability concerns and uncertainty at major shareholder Delfin.
New AI Smart Glasses Launch
In late June, the two companies unveiled a new range of lower-priced AI smart glasses, starting at $299. The new models will be manufactured outside EssilorLuxottica's facilities.
Outlook and Additional Information
Medium-Term Outlook
The company confirmed the medium-term outlook it provided earlier this year.
Currency Exchange Rate
($1 = 0.8774 euros)
Reporting Credits
(Reporting by Elisa Anzolin, additional reporting by Gianluca Lo Nostro; Editing by Emelia Sithole-Matarise)
