GICS Sector : Healthcare
EssilorLuxottica Société anonyme designs, manufactures, and distributes ophthalmic lenses, frames, and sunglasses in North America, Europe, Latin America, Asia, Oceania, and Africa.It operates in five segments: Wholesale, Retail, Lenses and Optical Instruments, Equipment, and Sunglasses and Readers.The Wholesale segment engages in the manufacture and wholesale distribution of luxury and sports eyewear.
EssilorLuxottica reported a 7.3% revenue growth at constant currency in H1 2025, with a stable adjusted operating margin. The company's EPS came in at 3.07, below analyst estimates of 4.01. The revenue growth was driven by the company's product and brand portfolio, with North America growing 5.5%, EMEA 9.1%, Asia Pacific 8%, and Latin America approximately 8%. The company's gross margin dilution was about 80 basis points at constant currency, mainly due to tariffs and the dilution related to Ray-Ban Meta. Operating expenses were well-managed, down 70 basis points as a percentage of revenue.
Publication Date: Aug -02
The company's regional performance was strong, with North America's LensCrafter and Sunglass Hut performing well, EMEA's double-digit growth in direct-to-consumer and high-single digit in Professional Solutions, and Asia Pacific's growth driven by Japan, Korea, and China. Latin America continued its premiumization journey with both channels growing approximately 8%. The successful rollout of Ray-Ban Meta in Mexico was highlighted, and Oakley continued to perform strongly in the region.
Key product categories like lenses and frames showed positive growth, driven by brands like Ray-Ban Meta, Oakley, and Varilux. Lens sales grew mid-single digit for Varilux and high-single digit for Eyezen. Direct-to-consumer sales were strong, with double-digit growth in Sunglass Hut and Solaris banners in Mexico and Andes. The smart glasses category, including Ray-Ban Meta and Oakley, is experiencing exponential growth, with profitability improving due to high penetration of Transition lenses and prescription options.
With a P/E Ratio of 50.0, P/B Ratio of 2.92, and P/S Ratio of 4.44, the company's valuation appears to be pricing in significant growth expectations. The company's guidance for the second half of 2025 is positive, with expectations of continued growth driven by innovation and premiumization efforts. The current trading trend is positive, with July starting well across regions. Analysts estimate next year's revenue growth at 6.2%, which may be challenging to achieve given the current valuation.
The company is confident about the FDA approval for the first generation of Stellest by the end of the year, which is expected to drive future growth. Nuance, a new platform combining hearing aids and prescription lenses, is being rolled out with a full assortment and pricing strategy planned for the second half of the year and beyond. The company's investments in Nuance and Stellest 2.0 are expected to drive future results, and the smart glasses category is expected to continue its exponential growth.
EssilorLuxottica creates Scientific Advisory Committee to accelerate the next era of innovation
Dec -01
Rocco Basilico to Exit EssilorLuxottica, Marks Leadership Change in Wearables Segment
Dec -01
EssilorLuxottica upgraded to Buy from Neutral at UBS
Nov -28
How the Narrative Surrounding EssilorLuxottica Is Evolving After Bullish Analyst Revisions and Innovations
Nov -18
Meta’s Pain May Be Your Gain: Is This a Rare Buying Window?
Nov -16
Meta Opens Pop-Up Stores to Build Buzz for Its AI Glasses
Nov -15
Heidelberg Engineering joins the Collaborative Community on Ophthalmic Innovation (CCOI) through EssilorLuxottica’s Vision Architect membership
Nov -14
EssilorLuxottica: Disclosure of Share Capital and Voting Rights Outstanding as of October 31, 2025
Nov -12
EssilorLuxottica SA's Direct-to-Consumer segment growth of 7.0% is driven by increasing demand for online eyewear, strategic acquisitions, and strong brand portfolio. The company's e-commerce platform and retail expansion have enhanced customer experience, contributing to revenue growth.
Professional Solutions (PS) growth of 5.5% driven by increasing demand for eye care services, expanding optometrist and ophthalmologist networks, and high-margin equipment sales. EssilorLuxottica's strong brand portfolio and innovative product offerings, such as Varilux lenses, also contribute to this growth.
EssilorLuxottica SA offers a wide range of prescription lenses, including single vision lenses, progressive lenses, and reading glasses. These lenses are designed to correct various vision problems, such as nearsightedness, farsightedness, and presbyopia.
EssilorLuxottica SA designs and manufactures a variety of sunglasses, including polarized lenses, mirrored lenses, and prescription sunglasses. These sunglasses are designed to protect the eyes from UV rays and provide comfort and style.
EssilorLuxottica SA offers a range of contact lenses, including daily disposable lenses, monthly disposable lenses, and toric lenses. These lenses are designed to provide comfortable and convenient vision correction.
EssilorLuxottica SA designs and manufactures a wide range of optical frames, including acetate frames, metal frames, and hybrid frames. These frames are designed to hold prescription lenses and provide a stylish and comfortable fit.
EssilorLuxottica SA offers a range of sports eyewear, including goggles, glasses, and sunglasses designed for athletes. These products are designed to provide protection, comfort, and performance enhancement for athletes.
EssilorLuxottica SA operates in the eyewear industry, where there are substitute products such as contact lenses and refractive surgery. However, the company's strong brand portfolio and wide range of eyewear products mitigate the threat of substitutes.
EssilorLuxottica SA has a large customer base and a strong distribution network, which reduces the bargaining power of individual customers. Additionally, the company's products are often purchased through intermediaries such as optometrists and retailers, which further reduces customer bargaining power.
EssilorLuxottica SA relies on suppliers for raw materials such as lenses and frames. While the company has a large number of suppliers, some of them may have significant bargaining power due to their size and market share. However, the company has a strong supply chain management system, which mitigates the bargaining power of suppliers.
The eyewear industry has high barriers to entry, including high marketing and advertising costs, strong brand loyalty, and a large number of existing players. This makes it difficult for new entrants to compete with established companies like EssilorLuxottica SA.
The eyewear industry is highly competitive, with a large number of players competing for market share. EssilorLuxottica SA competes with other major players such as Luxottica Group, Essilor, and Hoyalux. The high competition leads to high marketing and advertising costs, which increases the intensity of rivalry.
| Value | |
|---|---|
| Debt Weight | 24.66% |
| Debt Cost | 4.28% |
| Equity Weight | 75.34% |
| Equity Cost | 8.17% |
| WACC | 7.21% |
| Leverage | 32.73% |
Value: 3.5
Growth: 4.2
Quality: 7.8
Yield: 7.5
Momentum: 5.5
Volatility: 9.3
1-Year Total Return ->
Value: 3.9
Growth: 2.2
Quality: 6.5
Yield: 6.9
Momentum: 7.5
Volatility: 7.3
1-Year Total Return ->
Value: 0.8
Growth: 5.8
Quality: 6.2
Yield: 3.1
Momentum: 8.0
Volatility: 7.0
1-Year Total Return ->
Value: 1.8
Growth: 4.1
Quality: 6.7
Yield: 5.6
Momentum: 0.0
Volatility: 8.7
1-Year Total Return ->
Value: 3.5
Growth: 8.8
Quality: 8.0
Yield: 5.0
Momentum: 0.0
Volatility: 1.3
1-Year Total Return ->
Value: 0.9
Growth: 5.7
Quality: 8.0
Yield: 3.1
Momentum: 0.5
Volatility: 5.3
1-Year Total Return ->