Smart glasses surge fuels essilorluxottica's sales jump
Essilorluxottica sees strong q4 sales boost
TechNest Innovations is reporting a significant surge in sales for EssilorLuxottica, the world’s largest eyewear manufacturer. The company announced an impressive 18% increase in sales for the fourth quarter, driven largely by the rising demand for smart glasses co-developed with Meta. This translates to €7.6 billion in revenue (approximately $9 billion USD) during the holiday period, significantly surpassing analyst expectations of an 11% increase.
Meta-powered glasses driving growth
The Ray-Ban Meta and Oakley smart glasses, born from the collaboration between EssilorLuxottica and Meta, are proving to be a major hit with consumers. This partnership has solidified their position as leaders in the burgeoning wearable Technology category. While EssilorLuxottica didn't break down specific earnings for the quarter, they revealed they anticipate selling over 7 million pairs of AI-powered glasses by 2025, demonstrating a robust market appetite for this Technology.
Margin concerns amidst production expansion
Despite the impressive revenue growth, Bloomberg Intelligence notes that EssilorLuxottica’s underlying Ebit margin slipped to 15.7% in 2025, slightly below the anticipated 16.1%, due to factors including tariffs and the dilutive effect of the rapidly growing smart glasses. Senior analyst Diana Gomes highlighted investor concerns regarding the costs associated with rapidly scaling up production. However, EssilorLuxottica management assured investors that the smart glasses wouldn't permanently impact their margins.
Looking ahead: growth and innovation
CEO Francesco Milleri and Deputy CEO Paul Du Saillant stated their commitment to “solid revenue growth over the next five years, with the adjusted operating profit rate in line overall.” The company’s adjusted operating profit saw a 6.8% increase to €4.5 billion in 2025, also exceeding analyst forecasts. They anticipate continued product innovation will drive price increases.
Meta's production plans and supply chain considerations
Meta recently postponed the international rollout of its latest Ray-Ban Display models (priced at $799), initially launched in the US in September, citing supply constraints. Reports indicate Meta is aiming to double its production capacity to 20 million units or more this year. EssilorLuxottica’s CFO, Stefano Grassi, confirmed they are prepared to manage the anticipated demand, both internally and externally, collaborating closely with Meta.
Regional performance and future outlook
For the full year 2025, EssilorLuxottica's adjusted margin stood at 16%, a decrease of 70 basis points from 2024 at constant exchange rates. Sales in North America experienced a substantial 24% increase, while Europe and Asia both saw growth exceeding 10% in constant currency. Analyst Jean Danjou from Oddo BHF suggests the company conveyed a cautious outlook regarding margins for 2026, citing ongoing impacts from tariffs and exchange rates.