EssilorLuxottica Beats Forecasts as Core Eyewear Offsets Slower Smart Glasses Growth

The company behind Ray-Ban, Oakley and Supreme has shown that traditional eyewear still carries the business. EssilorLuxottica reported third-quarter sales of €7.49 billion on 20 October. The result beat analyst forecasts and sent the shares sharply higher in Paris today. Investors had been worried that the group’s AI-glasses boom was fading, and that smart glasses might one day undercut its core frame and lens business. This quarter’s numbers eased those fears for now.

Revenue rose 9.0% at current exchange rates and 7.2% at constant currency, with every region contributing. That compared with the 6.3% average of analysts’ estimates compiled by Bloomberg. The result also topped the €7.36 billion that analysts polled by Visible Alpha had expected.

The company’s direct-to-consumer arm drove the quarter. Sales there rose 10.6% at constant currency, with comparable-store sales up 6.8%. The professional solutions division, which sells to wholesale customers, grew 3.4%. That is a slower pace than the double-digit growth of a year earlier, and the group acknowledged a high comparison base. Asia-Pacific stood out with double-digit growth, while North America rose 4.7% at constant currency. Over the first nine months, direct-to-consumer sales are up 11.1%, and professional solutions are up 6.3%.

The surprise was the strength of the traditional business. Reuters reported that, unlike in previous quarters, sales of Ray-Ban smart glasses made with Meta slowed, while the core eyewear business was the main growth driver. The company says Ray-Ban and Oakley frames grew in both volume and value, and in EMEA they delivered double-digit growth. Luxury licensed brands recovered from a weak second quarter, with Chanel, Prada, Miu Miu standing out in different regions.

Wearables still grew 20%, but the slowdown is clear. EssilorLuxottica disclosed wearables revenue for the first time, at €486 million, or 6.5% of group sales. <cite id="x">Growth in the previous quarter had been close to 100%.</cite> Management attributed part of the deceleration to a much tougher comparison with last year.

The market reaction was dramatic. Shares were up 14% in early trading, heading for the biggest one-day jump since 2008. The rally follows a long slide. The stock had roughly halved over the past year, amid worries about rivals and privacy problems tied to smart glasses. Even after the surge, it remains 47% below its peak.

Analysts struck a mixed tone. RBC called the shares attractively valued, with defensive core attributes in a challenging consumer environment. Bernstein warned that smart glasses disrupting traditional eyewear would remain a “sword of Damocles” over the company. The broker also said Google’s planned launch of Gemini AI glasses by the end of 2026 makes a cautious message on fourth-quarter expectations sensible.

The results came as the Meta partnership faces public scrutiny. Meta used its Connect conference in September to unveil a camera-free, audio-only version of its glasses, amid global concerns about people being filmed without consent. The $349 Ray-Ban Meta Audio launched alongside the $449 Ray-Ban Meta (Gen 3). Earlier in September, the UK’s Information Commissioner’s Office said reports of people being recorded without their knowledge raised “important and serious questions”. The CFO told analysts the camera-free model offers an option to consumers who don’t want a camera. He also said the holiday season and broader product lineup should help wearables.

Beyond sunglasses: myopia, clinics and streetwear

The group’s growth story reaches well past fashion. Myopia management sales grew 24% in the quarter, and the Stellest lens was named by TIME among the Best Inventions of the Year. In North America, Stellest is now in around 12,000 doors. In EMEA, the group has consolidated eye-clinic operators Optegra and Signifeye, and in Thailand it has added the Top Charoen optical retail network. Its optical subscription scheme has reached about 2.9 million members in 19 countries.

The company also reaches into fashion. It agreed in 2024 to buy the streetwear label Supreme from VF Corp for $1.5 billion in cash. VF had paid $2.1 billion for the brand in 2020. Bernstein’s Luca Solca called the deal surprising and seemingly outside the group’s eyewear “comfort zone”. The third-quarter report doesn’t break out Supreme’s results.

The outlook

For the longer term, EssilorLuxottica says it expects solid revenue growth over the next five years at constant currency, with broadly aligned growth in adjusted operating profit. It describes its ambition as becoming a leader in advanced, integrated eye health. That frames the AI glasses as one part of a broader medtech push, alongside myopia treatments, hearing glasses and clinics.

Closing thoughts

One strong quarter does not settle the debate over whether smart glasses will complement or displace traditional eyewear. But the numbers suggest the old business remains healthy, and that is what investors seemed to want to hear. The next test comes with the holiday season, when new Meta glasses, a camera-free option and rival launches from Google will compete for attention.