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EssilorLuxottica Reports Q1 Fiscal 2024 Up 5.5% Compared To Q1’23

EssilorLuxottica announced today that consolidated revenue for the first quarter of 2024 reached Euro 6,335 million, representing a year-onyear increase of 5.5% at constant exchange rates compared to the first quarter of 2023 (+3.0% at current exchange rates).

Francesco Milleri, Chairman and CEO, and Paul du Saillant, Deputy CEO at EssilorLuxottica
commented: “We’re pleased to report another solid start to the year for the Company, with every geography and business contributing to the positive performance.

“Building on these results, and thanks to our strong executive team and our 200,000 talented colleagues, we continued to make bold and transformational moves, driven by a strong pipeline of innovation with new categories, digital solutions and products including Stellest, Varilux XR series and the recently launched Transitions Gen S. We further consolidated our luxury portfolio with the renewal of licensing agreements with trusted partners such as Dolce&Gabbana and Michael Kors; and improved our retail presence following the acquisition of Washin in Japan. Also, with Ray-Ban Meta and Nuance Audio, showcased in the last few hours to the members of the US Congress at ‘CES on the Hill’ in Washington DC, we are reinforcing our leadership beyond the boundaries of vision care and eyewear, while truly
rewriting the story of the industry.

“With this positive momentum, we approach the first half of the year with optimism and remain confident in our strategic vision and our ability to deliver on our long-term outlook.”

Highlights
The initial quarter of 2024 grew mid-single digit in line with the long-term guidance. This result came on top of a difficult comparison base as the first quarter was the strongest one in 2022 and 2023 (+11.5% in Q1 2022 versus 2021 and +8.6% in Q1 2023 versus 2022). The top performing regions were EMEA, Asia-Pacific and Latin America, while North America was up low-single digit being itself faced with a tough two-year stack base. The results of the two segments were broadly aligned.

Professional Solutions
Professional Solutions recorded revenue of Euro 3,080 million, up 4.6% compared to the same period of 2023 (+1.8% at current exchange rates).

All regions were positive. Latin America and Asia-Pacific continued their double-digit growth trajectory and EMEA maintained the solid mid-single-digit momentum, while North America progressed on a slightly slower pace. Stellest and Varilux were the biggest contributors to the growth within the lens business, while Ray-Ban, Oakley, Prada and Swarovski turned out to be the most attractive frame brands starting the year.

Direct to Consumer
Direct to Consumer registered revenue of Euro 3,255 million, up 6.3% compared to the first quarter of 2023 (+4.2% at current exchange rates).

The performance of the segment was broadly balanced between the physical network and e-commerce. Brick-and-mortar comparable-store sales advanced at around 5%. The optical banners led the growth again as sun continued to be impacted by the weak performance in North America. E-commerce returned to a more appealing growth profile fueled by Ray Ban.com at double digits powered by Meta.

North America
North America posted revenue of Euro 2,875 million, up 1.7% compared to the first quarter of 2023 (+0.6% at current exchange rates), on top of the strongest quarter of last year when revenue grew 7% versus 2022.

The Professional Solutions segment was up low-single digit in the quarter. The optical side drove the results coupled with the new product launches sparking profound interest from customers. Varilux XR continued to ramp up driving the favorable momentum for the entire brand especially in the independent channel. The buoyant demand for the new Ray-Ban Meta smart glasses continued to beat expectations and among the new licenses, ECPs were particularly excited about Jimmy Choo’s glamourous styles with the brand hitting the ground running from March. The overall results were overshadowed by weak trends in the sunglasses category affecting predominantly the department stores and sport channels.

Once again, the growth of the Direct to Consumer segment was entirely sustained by the optical business. Insurance coverage kept playing an important role in the buying decisions of consumers with LensCrafters, Target Optical and Pearle Vision well prepared to leverage the opportunity. EyeMed kept growing, with the number of lives covered climbing to over 80 million in 2024. Sunglass Hut continued to face feeble demand and remained negative in the quarter with the international locations representing the brighter spot and driving the slight improvement compared to the fourth quarter. The e-commerce business returned to growth led by the excellent performance of Ray-Ban Meta on the brand’s website.

EMEA
EMEA posted revenue of Euro 2,321 million, up 8.5% compared to the first quarter of 2023 (+5.8% at current exchange rates), notably accelerating from the fourth quarter of last year.

The consistent performance of the Professional Solutions segment sees the business in excellent shape. The growth was broadly balanced between the different product categories and on a geographical level. Varilux was the biggest contributor of the growth in lenses boosted by the excellent take up of the XR series. The co-branded campaign Varilux | Persol further elevated the brand’s overall visibility. Swarovski was able to rely on one of the top performing frame collections confirming the brand’s strong appeal among consumers looking for the ultimate sparkle. The new Oakley Sphaera style, targeting increased comfort and an extended field of vision, was also off to a promising start from February.

Direct to Consumer delivered an excellent quarter spanning both optical and sun. The optical banners continued to grow high-single digit in comparable-store sales reaping the benefits from the optimized assortment in the stores aimed at providing higher value products to the final consumer. Stellest has been rolled out in most countries and the mix of Transitions lenses increased again during the quarter.

Lower discounts and the further development of the subscription model also underpinned the positive results. After closing two consecutive years of double-digit growth, the sun business started 2024 equally well in the first quarter.