EssilorLuxottica AI glasses sales nearly double as myopia products fuel profit surge

EssilorLuxottica profit beats forecasts, AI glasses and myopia products drive revenue growth

MILAN, July 28 (Reuters) - Franco-Italian eyewear maker EssilorLuxottica (ESLX.PA), opens new tab reported a 15% rise in first-half adjusted operating profit on Tuesday, comfortably beating analysts' expectations, while revenue growth was driven by strong demand for AI-powered glasses and products in its myopia management portfolio. The Ray-Ban maker made adjusted operating profit of €2.75 billion ($3.13 billion) in the six months to June 30, compared with a Visible Alpha analyst ⁠consensus of €2.46 billion. The company did not provide a detailed explanation for the stronger-than-expected profit performance. In recent weeks, however, some European companies, including Philips (PHG.AS), opens new tab, have reported margins ahead of market expectations, partly benefiting from U.S. tariff-related reimbursements. Second-quarter revenue rose 8.7% at a constant exchange rate, supported by an almost doubling of sales from AI glasses produced in partnership with Meta (META.O), opens new tab and a 24% increase in revenue from the myopia portfolio ⁠over the same period. The company said its core eyewear and eyecare business, which accounts for the vast majority of revenue, delivered mid-single-digit growth during the period. Revenue came in at €7.7 billion, slightly below analysts' expectations of €7.8 billion, according ⁠to the Visible Alpha consensus. Shares in the group have nearly halved from their mid-November peak amid concerns over the smart glasses outlook, profitability concerns and uncertainty ⁠at major shareholder Delfin. In late June, the two companies unveiled a new range of lower-priced AI smart glasses, starting at $299. The new ⁠models will be manufactured outside EssilorLuxottica's facilities. The company confirmed the medium-term outlook it provided earlier this year. ($1 = 0.8774 euros) Reporting by Elisa Anzolin, additional reporting by Gianluca Lo Nostro; Editing by Emelia Sithole-Matarise Our Standards: The Thomson Reuters Trust Principles., opens new tab

AI glasses help propel EssilorLuxottica sales growth

Paris (France) (AFP) - Sales of AI-enabled eyeglasses, which have nearly doubled since last year, helped EssilorLuxottica accelerate second-quarter growth, the world's largest maker of eyeglasses reported Tuesday. Second quarter sales rose 7.2 percent in the three months to June to 7.7 billion euros ($8.8 billion). "AI glasses confirmed their exponential growth, almost doubling in sales in the second quarter versus last year," the company said. The company didn't provide a figure for sales of AI glasses, however. The company's chief executive Francesco Milleri said sales of AI glasses expanded across the globe and consumer segments and were generating sustainable profits. EssilorLuxottica's share price took a hit after releasing its first quarter results, with analysts saying investors had switched from seeing AI eyeglasses as an opportunity to a risk. Earlier this year the company expanded its AI-enabled offering with a new line developed by Ray-Ban in partnership with Meta aimed at a younger public that is more price sensitive. "We look to expand our market, targeting new consumers that have more sensibility to price and maybe are younger and more interested in having something technology" integrated, said Milleri during a conference call. While the company's frames are the most visible segment, it was built from a merger that included lens manufacturer Essilor. The company has continued to innovate with lenses that slow the progression of short-sightedness in children. Sales of these lenses jumped by 24 percent. EssilorLuxottica has also branched into hearing correction, with its Nuance Audio integrating hearing aids into eyeglasses frames. Milleri said a second generation of the products offering better performance would hit markets in mid-September. First half sales rose 5.7 in the first half of the year to 14.8 billion euros. Net profits soared by 12.9 percent to 1.6 billion euros.

Ray-Ban Maker EssilorLuxottica's Sales Growth Slows Despite Smartglasses Boom -- 2nd Update

Eyewear company EssilorLuxottica said sales growth slowed a little in the second quarter from the first, despite a continued rapid increase in revenue from its smartglasses. The Franco-Italian manufacturer of Oakley and Ray-Ban sunglasses booked 8.7% year-on-year organic growth in its top line to 7.69 billion euros ($8.74 billion) in the three months through June, losing a little pace from the 11% growth it recorded in the first three months of the year. Analysts polled by Visible Alpha had forecast sales of 7.83 billion euros in the second quarter. Sales in the Asia-Pacific region drove quarterly growth, rising by 17% on year after the acquisition of the store network of optical retailer Top Charoen, which owns around 2,000 stores in Thailand. Revenue in North America and Europe saw some softer trends, in part due to conflict in the Middle East, EssilorLuxottica said. Sales of Ray-Ban and Oakley smartglasses, powered by artificial intelligence and produced in collaboration with tech giant Meta, nearly doubled on the year in the second quarter, adding to rapid expansion in a category the company is banking on to help fuel its growth over the longer term. The company backed its five-year guidance of "solid growth" in total revenue and "broadly aligned" increases in adjusted operating profit. It didn't offer any numerical guidance. "AI glasses confirmed their exponential growth," the company said. Still, questions remain around the company's growth trajectory as it leans into its smartglasses product offer. "The point of debate remains the prospects for smartglasses," analysts at brokerage Bernstein wrote in a note following the update. The group could face competition from other smartglasses models in the near future, with Google and Apple preparing their own models of the wearable tech. But plenty of untapped opportunity still lies ahead for EssilorLuxottica, analysts at UBS wrote in a note this month. "Our long-standing view has been that greater competition is necessary to help build the category and accelerate adoption in the U.S. and globally," the bank's analysts said. The company's adjusted operating profit rose by 15% over the first six months of the year, while its operating margin grew to 18.9% from 18.1% in the previous-year period.