EssilorLuxottica H1 Profit Surpasses Estimates on Strong Myopia and AI Glasses Sales

EssilorLuxottica reported a 15% increase in first-half adjusted operating profit, significantly outperforming analyst expectations. The Franco-Italian eyewear giant's strong performance was fueled by surging demand for its AI-powered smart glasses and specialized myopia management products.

Earnings in Detail

The company's adjusted operating profit for the six months ending June 30 reached €2.75 billion ($3.13 billion), comfortably ahead of the €2.46 billion consensus forecast from analysts surveyed by Visible Alpha. EssilorLuxottica did not provide a detailed explanation for the stronger-than-expected profit margin.

Total revenue for the second quarter was €7.7 billion, a slight miss against the €7.8 billion analyst consensus. However, sales grew 8.7% at a constant exchange rate, driven by key growth segments.

• Sales from AI glasses, developed in partnership with Meta, nearly doubled in the second quarter.
• The myopia portfolio saw a 24% increase in revenue over the same period.
• The core eyewear and eyecare business delivered stable mid-single-digit growth.

Ad

Strategic Drivers and Market Context

The results highlight the increasing importance of the company's technology-focused products. Despite this growth, investor sentiment has been cautious. The group's shares have nearly halved from their mid-November peak amid concerns over the long-term outlook for smart glasses, profitability, and uncertainty at its major shareholder, Delfin.

In a move to broaden the market, EssilorLuxottica and Meta recently unveiled a new range of lower-priced AI smart glasses starting at $299. The company also noted that these new models will be manufactured outside of its own facilities. EssilorLuxottica confirmed that it is maintaining the medium-term outlook it provided earlier this year.