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Essilor Luxottica Q2/H1 2025 Results show Sound revenue growth at 7.3%

Key Metrics

Group’s revenue growing 7.3% in both Q2 and H1 (constant exchange rates1)
North America accelerating in PS, DTC keeping a solid growth pace
EMEA confirming the strong performance of PS and DTC, as the best region for the Group
AI glasses Ray-Ban Meta up more than 200% in sales in H1
AI glasses Oakley Meta on the blocks, successful launch of the 50th anniversary edition
Nuance Audio already rolled out in 10k doors across North America and Europe
Adjusted2 operating margin stable at 18.3% in H1 (constant exchange rates1)
Sound free cash flow5 generation at Euro 951 million
Acquisition of Optegra clinics marking a further step into the new MedTech journey

Francesco Milleri, Chairman and CEO, and Paul du Saillant, Deputy CEO at EssilorLuxottica commented: “With a strong first half, including top-line growth and momentum across all regions and businesses, we are keeping pace with our growth targets despite a volatile environment.We are leading the transformation of glasses as the next computing platform, one where AI, sensory tech and a data-rich healthcare infrastructure will converge to empower humans and unlock our full potential. The success of Ray-Ban Meta, the launch of Oakley Meta Performance AI glasses and the positive response to Nuance Audio are major milestones for us in this new frontier.As we advance our med-tech journey and prepare to welcome Optegra, we’re shaping the most personalized, adaptive patient experience to date. Our offering will span comprehensive eyecare, advanced diagnostics and eye treatment, while paving the way for early detection of broader systemic conditions. We are fortifying our leadership in myopia management with Stellest 2.0. At the same time, as we proudly celebrate Oakley’s 50th anniversary, we continue driving innovation at our core, with AI-powered Varilux Physio Extensee technology and Ray-Ban’s bold Puffer collection among others wins that have us moving into the second half with confidence.

In the second quarter of the year EssilorLuxottica recorded sound growth of the revenue, keeping the exact pace of the first quarter, up 7.3% at constant exchange rates1 (up 3.2% in current terms, essentially discounting the US dollar devaluation, to Euro 7,175 million), leading to the same growth performance in the first semester, with Direct to Consumer segment still outpacing Professional Solutions. The Group’s well balanced and diversified revenue mix continued to support the top line performance, with some extra help arising from M&A (in particular regarding Supreme and Heidelberg Engineering, both consolidated on 1 October 2024). In terms of the operating margins of the first semester of the year, the Group managed to confirm the level of last year, with the adjusted2 operating profit at 18.3% of the revenue at constant exchange rates1, despite the headwind represented by the new import duties in the US.

AI glasses gained further traction in the first half of the year, with Ray-Ban Meta more than tripling in revenue year-over- year. The new Oakley Meta was announced in June, being on the blocks with the HSTN collection equipped with Oakley Prizm lenses, that will be available later this summer. Nuance Audio was launched in February in the US and Italy, then rolled out to other four countries in Europe (France, the UK and Germany, plus Spain in July) and is available today in around 10 thousand doors in the six countries, in both the wholesale and retail channel. The product is proving to be effective in addressing mild-to-moderate hearing impairment in different conditions and the wearers’ feedback sounds extremely supportive, which bodes well for the gradual ramp-up of the sales of such a new disruptive category. Wearables apart, the core business of vision care, which still makes up the vast majority of the Group’s business, confirmed its solid growth trajectory, leveraging its high degree of diversification and rich content of innovation.

Looking at the revenue by geographies in the second quarter, once again all the regions materially contributed to the Group’s growth, with the M&A addition being more visible in the Direct to Consumer segment in Asia and the US. North America rose 5.5% at constant exchange rates1, with Professional Solutions accelerating throughout the period and Direct to Consumer nicely growing in comparable-store sales3 year-on-year, with the addition of Supreme stores and online. EMEA was the best performing region for the Group, rising 9.1% at constant exchange rates1, driven by both Professional Solutions and Direct to Consumer, respectively up high-single digit and double digits. Asia-Pacific grew 7.8% at constant exchange rates1, slowing slightly down in China in Professional Solutions. Latin America advanced by 8.2% at constant exchange rates1, keeping the sound pace of the first quarter in both the channels.

As for the operating segments, in the second quarter Professional Solutions rose by 3.9% at constant exchange rates1 (flattish in current terms) and Direct to Consumer increased by 10.4% (up 6.2% in current terms). The brick-and-mortar comparable-store sales3 advanced close to 7%, with both optical and sun nicely growing, whilst e-commerce jumped by one fourth including Supreme and high-single digit excluding it, on the back of the strong performance of Ray-Ban.com and SunglassHut.com.

In the first six months of the year, the Group’s revenue reached Euro 14,024 million (up 5.5% year-over-year), rising 7.3% at constant exchange rates1, with all the regions nicely growing and Direct to Consumer segment outpacing Professional Solutions.

The adjusted2 gross profit amounted to Euro 8,896 million in the first semester of the year, reaching 63.4% of revenue, 90 basis points lower than H1 2024 (or -80 basis points at constant exchange rates1), due to the new US import tariff impact and higher weight of wearable revenue, partly counterbalanced by the positive contribution of the price-mix.

The adjusted2 operating profit reached Euro 2,532 million in the semester, representing 18.1% of revenue, compared to 18.3% in H1 2024, with a margin dilution of 20 basis points. At constant exchange rates1, the margin kept flat at 18.3% of revenue, despite the headwind represented by the new US import duties, after the effective cost containment at the G&A level (up only 1% at constant exchange rates1).

The adjusted2 Group net profit amounted to Euro 1,799 million in the semester, representing 12.8% of revenue, compared to 13.1% in 2024, a margin dilution of 30 basis points (or -10 basis points at constant exchange rates1 to 13.0% of revenue), also reflecting a slight increase of the tax rate.

The IFRS operating profit and the Group net profit reported in the interim consolidated financial statements amounted to Euro 2,003 million and Euro 1,387 million respectively in the semester.

The Company confirms its target of mid-single-digit annual revenue growth from 2022 to 2026 at constant exchange rates1 (based on 2021 pro forma4 revenue), targeting a range of €27-28 billion, and expects to achieve an adjusted2 operating profit as a percentage of revenue in the range of 19-20% by the end of that period.

Launch of Oakley Meta

On June 20, 2025, EssilorLuxottica and Meta Platforms announced Oakley Meta, a new category of Performance AI glasses that pair Meta’s industry-leading AI technology with Oakley’s pioneering design and PRIZM lenses to transform how consumers experience their biggest wins – on and off the field. Following the category-defining success of Ray-Ban Meta, the #1 selling AI glasses in the world which had sold millions of units since launch, Oakley Meta glasses is the next product line to come from this long-term partnership.

Oakley Meta HSTN, the first product in the collection, includes key tech improvements, including Ultra HD 3K recording, so videos are clearer and higher resolution than Full HD (1080p). People can enjoy their favorite music and podcasts with powerful open-ear speakers seamlessly integrated into the frames. Oakley Meta HSTN also provides 40% longer battery life, lasting up to eight hours of typical use and up to 19 hours on standby. The glasses come with a charging case that can deliver up to 48 hours of charging on the go.

Consumers have the option to fit their Oakley Meta HSTN with Oakley PRIZM Lens technology, one of the most advanced innovations in lens design. This revolutionary technology fine-tunes the light spectrum, amplifying color while filtering out visual noise. This allows subtle visual cues to come sharply into view, helping wearers see more, react quicker, and perform at their peak.