Earnings
EssilorLuxottica beats sales forecasts, but smart-glasses growth slows to 20% in the third quarter
Group revenue rose 7.2% at constant currency to €7.49 billion, ahead of estimates, while wearables revenue grew far more slowly than over the year to date.
HedgeWeekly News Desk ·
EssilorLuxottica reported third-quarter revenue of €7.49 billion on Tuesday evening, up 9.0% at current exchange rates and 7.2% at constant currency. That beat the 6.3% constant-currency growth analysts had expected, and the euro figure topped a consensus of about €7.35 billion cited by Investing.com.
Direct-to-consumer sales grew 10.6% at constant currency to €4.09 billion, with comparable-store sales up 6.8%. Professional Solutions, the wholesale arm, grew 3.4% after double-digit gains a year earlier. By region, Asia-Pacific led at 15.7%, followed by EMEA at 7.5%, Latin America at 7.1% and North America at 4.7%. Myopia management products rose 24%.
Wearables, which include the AI glasses made with Meta Platforms and the Nuance Audio hearing frames, brought in €486 million in the quarter, up 20%. Over the first nine months the category totalled €1.26 billion, up 79%, which means growth slowed sharply in the third quarter. The company launched Nuance Audio Plus in mid-September and plans new AI glasses for the holiday season. It did not give a financial outlook in the release.
The wearables pace is the figure investors will focus on. EssilorLuxottica shares have lost more than 40% this year as the market reassessed expectations for AI glasses, and the fourth quarter faces a tough comparison after heavy smart-glasses sell-in to Meta in late 2025, which Morgan Stanley called the key challenge for the outlook. The results suggest the traditional eyewear and eyecare business, which grew more than 6% at constant currency, is carrying the group while the new category slows.