EssilorLuxottica Shares Surge After Beating Third-Quarter Revenue Estimates
EssilorLuxottica shares rose over 11% after the company reported third-quarter revenue of €7.49 billion, exceeding analyst expectations through strong direct-to-consumer and wearables sales.
Shares of EssilorLuxottica surged more than 11% in Paris on Wednesday following the report of third-quarter revenue totaling €7.49 billion. This figure exceeded analyst expectations of approximately €7.35 billion to €7.36 billion, representing a revenue increase of 7.2% to 9% depending on the metric used. Total revenue for the first nine months of the year reached €22.3 billion.
Growth was observed across all regions, led by a 15.7% increase in the Asia Pacific region, driven largely by myopia management products. North America saw a 4.7% increase. The company's direct-to-consumer sales rose 10.6%, while the wearables segment—which includes smart glasses and Nuance hearing-aid glasses—generated €486 million. Although wearables sales grew 20%, this represents a significant slowdown from the nearly 100% growth recorded in the previous quarter.
Executives Francesco Milleri and Paul de Lasteyrie du Saillant de Comborn attributed the results to the strength of the company's unique business model. The company is currently expanding its wearables portfolio with new AI glasses and the rollout of Nuance Audio Plus. Despite the recent revenue beat, the company's shares had lost roughly half their value over the past year due to intensifying competition in the wearables market and concerns regarding governance, profitability, and privacy.
