Source: Sharecast
Revenue rose 7.3% at constant exchange rates to €14.02bn, with second-quarter sales also up 7.3% year-on-year, outperforming analyst expectations.
Growth was led by Europe, the company’s best-performing region, while North America saw slower momentum due to adverse currency effects and US tariffs.
The eyewear behemoth noted steady performance across both its professional solutions and direct-to-consumer channels globally.
Sales of the Ray-Ban Meta smart glasses more than tripled in the first half, marking a key milestone in EssilorLuxottica’s effort to position eyewear as the next personal computing platform.
The newly-launched Oakley Meta AI glasses, tied to Oakley's 50th anniversary, were to match Ray-Ban Meta’s sales trajectory.
CEO Francesco Milleri said during an investor call, “We expect a very fast ramp-up.”
Nuance Audio, EssilorLuxottica’s new hearing-enhanced eyewear line, had already rolled out across 10,000 locations in North America and Europe.
The company said it was also advancing its medtech strategy, with the pending acquisition of Optegra, a network of more than 70 ophthalmology clinics in Europe.
It recently agreed to acquire assets from South Korea’s PUcore to strengthen its contact lens materials portfolio.
Adjusted operating profit rose 4.1% to €2.53bn, with the adjusted operating margin steady at 18.3%.
Group net profit on an adjusted basis increased 3.1% to €1.8bn, while free cash flow reached €951m in the first half.
Despite foreign exchange headwinds - revenue at current rates rose only 3.2% - and a 90 basis point decline in gross margin, the group offset some of the impact through price increases and more efficient sourcing.
CFO Stefano Grassi said the company was “manufacturing and distributing from the most efficient locations” and confirmed a positive start to July trading.
EssilorLuxottica reaffirmed its target of mid-single-digit annual revenue growth through 2026 at constant exchange rates, with adjusted operating margins expected in the 19% to 20% range.
The company said it was expanding production in Thailand to help meet future demand, targeting a capacity of 10 million smart glasses by the end of 2026.
At 1407 EST (1307 BST), shares in EssilorLuxottica were up 6.46% in Paris at €262.10.
Reporting by Josh White for Sharecast.com.
