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EssilorLuxottica Beats Profit Estimates on AI & Myopia Growth
28 Jul
Summary
- First-half adjusted operating profit rose 15%, exceeding analyst expectations.
- AI glasses sales nearly doubled, boosting revenue in the second quarter.
- Myopia management portfolio revenue increased by 24% in the second quarter.
Franco-Italian eyewear maker EssilorLuxottica achieved a 15% increase in adjusted operating profit for the first half of the year, a performance that comfortably exceeded analysts' predictions. This robust financial outcome was largely propelled by burgeoning demand for innovative products.
The company's strategic focus on cutting-edge technology and health solutions proved fruitful. Revenue from AI-powered glasses, developed in collaboration with Meta, experienced a near doubling in the second quarter. Simultaneously, the myopia management portfolio demonstrated significant growth, with revenue climbing by 24% over the same period.
While the core eyewear and eyecare business maintained mid-single-digit growth, the total revenue of €7.7 billion fell slightly short of the €7.8 billion consensus. EssilorLuxottica confirmed its previously stated medium-term financial projections, signaling confidence in its ongoing strategies.
Concerns surrounding the future of smart glasses, overall profitability, and uncertainties related to its major shareholder have previously impacted the group's share price. In response to market dynamics, the company recently introduced a new range of more affordable AI smart glasses.
