Ray-Ban maker posts strong Q2 as Meta invests in growth

Fashion Network

2 days ago

EssilorLuxottica, the world's largest eyewear group and owner of Ray-Ban, reported stronger-than-expected revenue for the second quarter, driven by price gains and growing momentum in smart glasses innovation.
EssilorLuxottica SA reported better-than-expected revenue in the second quarter, though tariffs and rising investment in smart glasses limited profit at the world's largest eyewear maker.
Revenue rose 7.3% at constant exchange rates to €7.18 billion ($8.36 billion) during the period, the company said Monday. The result beat analysts' expectations of a 5.9% increase, based on a Bloomberg-compiled consensus.
In the first half of the year, the Ray-Ban owner reported adjusted gross profit margins that declined by 90 basis points compared to the same period in the previous year, citing the impact of U.S. tariffs and increased spending on wearables.
A stronger price mix helped offset the pressure from tariffs and unfavorable exchange rates. EssilorLuxottica, which also owns LensCrafters and Sunglass Hut, benefited from premium pricing across several markets.
The company has fast-tracked its entry into the smart glasses market, unveiling the hearing-enhanced 'Nuance Audio' range and introducing 'Oakley Meta,' which infuses a sportswear edge into its ongoing collaboration with Meta Platforms Inc., parent company of Facebook. While the initiative has led to increased costs, it has also yielded significant returns: sales of Ray-Ban Meta more than tripled in the first half of the year.
Meta Platforms also deepened its commitment to the segment by acquiring just under 3% of EssilorLuxottica, as reported by Bloomberg News earlier this month. The investment gives Meta more control over hardware and distribution—a strategic move, according to Mark Zuckerberg, the company's Chief Executive Officer.
EssilorLuxottica shares, listed in Paris, have risen approximately 4.5% this year, lagging behind the 8.1% gain in the Europe-wide Stoxx 600 index.
The company reaffirmed its forecast for mid-single-digit annual revenue growth through 2026, based on constant exchange rates, and expects adjusted operating margins to remain between 19% and 20% of revenue.
EssilorLuxottica also continued its expansion in the medical technology sector—one of the company's key growth pillars.
Earlier this month, the company agreed to acquire assets from South Korea's PUcore to support the development of monomers used in contact lenses. In May, it also announced the acquisition of ophthalmology group Optegra, which operates over 70 eye hospitals and diagnostic centers across Europe.