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EssilorLuxottica Strong Revenue Growth in the First Quarter
- Group’s revenue up 8.1% at current and 7.3% at constant exchange rates1 in Q1
- Sound growth in both PS and DTC channels, with comparable-store sales3 up 8%
- EMEA growing 10% at constant exchange rates1, equally boosted by the two channels
- NA growing 4%, with solid trends in DTC and resilient demand in PS
- Asia-Pacific up double digits, with myopia solutions strong in China
- Ray-Ban Meta growing fast, with high penetration of Transitions
- After the US and Italy, Nuance Audio launched in France and starting in the UK and Germany
- Implementing measures to manage the impact of the US import duties
EssilorLuxottica have announced that consolidated revenue for the first quarter of 2025 reached Euro 6,848 million, representing a year-on-year increase of 7.3% at constant exchange rates compared to the first quarter of 2024
Francesco Milleri, Chairman and CEO, and Paul du Saillant, Deputy CEO at EssilorLuxottica commented: “In the first quarter, we successfully maintained strong momentum, with all regions and businesses contributing to steady growth (in constant currency terms) – each playing an integral role in advancing our journey in the wearables and med-tech space. From the new six-year clinical data confirming long-term efficacy of Stellest in slowing myopia progression to the transformative Nuance Audio launch marking an entirely new category in the U.S., Italy and France, we are making significant strides toward our strategic goals. Our brands are showing the power of relevance like never before, including Ray-Ban Meta’s extraordinary trajectory, Oakley celebrating its 50th year of being the world’s favorite sport performance brand and Oliver Peoples extending its partnership with legend Roger Federer. At the heart of this momentum are our 200,000 dedicated colleagues, whose commitment and passion fuel our continued success. Their growing involvement as shareholders stands a powerful testament to their trust in our Company and the values that define us. In a time of uncertainty, we advance with purpose, ambition and confidence in the future we are building together”.
The year started on a sound growth pace, amid an unsettled macroeconomic context, with revenue growing by 7.3% at constant exchange rates and 8.1% at current. Direct to Consumer channel outpaced Professional Solutions, supported by the strong performance of brick-and-mortar. All the regions grew by 9-10% at constant exchange rates, with the only exception of North America rising by 4%.
Professional Solutions
Professional Solutions recorded revenue of Euro 3,236 million, up 4.4% compared to the first quarter of 2024 (+5.1% at current exchange rates). EMEA and Latin America led the growth at a high-single-digit pace followed by Asia-Pacific, while North America was flattish. Ray-Ban, also thanks to the ramp-up of its smart glasses, Oakley and Miu Miu continued to be the most sought- after frame brands, while Stellest and Nikon kept up their success on the lens side.
Direct to Consumer
Direct to Consumer recorded revenue of Euro 3,612 million, up 10.1% compared to the first quarter of 2024 (+11.0% at current exchange rates). The healthy growth was sustained by the solid underlying performance of brick-and-mortar and e-commerce. Comparable-store sales3 were up 8% with a strong contribution from all regions as well as a broadly balanced pace for both optical and sun. In e-commerce, Ray-Ban.com was the top website boosted by the success of Ray-Ban Meta, followed by Oakley.com and LensCrafters.com. Supreme gave an additional uplift to the overall growth of the segment.
Group revenue by region
EMEA
EMEA posted revenue of Euro 2,548 million, up 9.9% compared to the first quarter of 2024 (+9.8% at current exchange rates), in line with the healthy growth of last year. The sound performance of Professional Solutions reflected the growth of the business across all the categories. Market appetite for Ray-Ban Meta continued to prove solid. The frame category was the main growth driver in the region, with a positive trajectory for both optical frames and sunglasses. Oakley emerged as a top performing brand, while Chanel and Miu Miu stood out among licenses. The lens business was fuelled by Stellest, which rose double digits, as well as by Nikon and Eyezen. Transitions continued to nicely contribute, with the penetration of Transitions Gen S on the rise, including the smartglasses.
In Direct to Consumer, comparable-store sales3 for both optical and sun were up high-single digit. In the optical business the elevation of the consumer journey successfully progressed, with teleoptometry now active in more than 20 banners and the subscription program “Vision as a Service” covering more than one million optical customers. The sun business started the year on a positive note, building on three consecutive years of strong growth. Nuance Audio, launched in Italy in February, received encouraging feedback from wearers.
North America
North America posted revenue of Euro 3,079 million, up 4.2% compared to the first quarter of 2024 (+7.1% at current exchange rates), delivering healthy results with a strong performance in Direct to Consumer.
The Professional Solutions segment kept flattish in revenue. Key accounts advanced strongly, while independents experienced a softer performance in the lens category. Shamir was still strong and continued to build on its success of the past quarters. On the frame side, sunglasses kept suffering especially in department stores, while prescription frames fared well with Ray-Ban and Oakley remaining popular. Kylian Mbappé spotlighting the Oakley Enigma Mass spiced up the new optical marketing campaign. Ray-Ban Meta nicely contributed to the results. Among licenses, Miu Miu and Chanel stood out as the best performing brands.
The Direct to Consumer growth was the combination of a robust performance across brick-and-mortar and e-commerce as well as the consolidation effect of Supreme. Comparable-store sales3 were up mid-to-high-single digit. Sunglass Hut continued the positive trend from the last quarter with the broad support of both international and local stores. Ray-Ban Meta kept attracting high interest also fueled by the maximum visibility gained during the Super Bowl event. The new Ray-Ban Meta x Coperni Limited Edition flew off the shelves. LensCrafters and Target strongly accelerated on the back of augmented exam utilization and conversion with the insured customers still leading the performance. EyeMed increased its reach, now covering approximately 85 million lives. The overall value proposition was enriched by Nuance Audio available from February.
Asia-Pacific
Asia-Pacific posted revenue of Euro 852 million, up 10.4% compared to the first quarter of 2024 (+11.0% at current exchange rates), thanks to a solid core performance as well as a positive boost from Supreme.
In Professional Solutions, the growth in Greater China reignited thanks to a continued solid performance of myopia solutions in lenses and a pick-up in the demand for frames, in particular Oakley and the luxury brands. The myopia management category grew by around 30% driven by Stellest and Nikon DOT. The latest innovation was showcased at the Shanghai International Optics Fair (SIOF) which also marked the debut of Transitions Gen S in the country. The trajectory in the other main markets, India, South East Asia and Japan, was sound and broadly aligned.
In Direct to Consumer, comparable-store sales3 at OPSM accelerated thanks to an improved exam conversion and favorable price-mix. Trends at Sunglass Hut in Australia also proved to be compelling with the contribution of a booming Ray-Ban Meta featuring the most advanced multi-modal AI. Japan remained a bright spot continuing on its double-digit comparable-store sales3 trajectory.
Latin America
Latin America posted revenue of Euro 369 million, up 9.2% compared to the first quarter of 2024 (-0.5% at current exchange rates), delivering another quarter of sound performance on top of the best-performing quarter of last year.
The Professional Solutions segment was supported by recovering Brazil, registering a positive performance in both frames and lenses, with the latter back to growth also boosted by Transitions Gen S. Óticas Carol recorded steady progress as the renewed franchise program accelerated its expansion, driving the upgrading of store services and product assortment. Transitions also played as a catalyst for Colombia, whose business continued to perform strongly. Overall in the region, the Oakley brand successfully accelerated and entered the year with an impressive growth profile.
The Direct to Consumer segment started the year with robust comparable-store sales3, sustained by both optical and sun banners. The retail business was once again boosted by the enriched product portfolio in the former GrandVision banners. GMO accelerated and delivered healthy growth throughout the first three months of the year. Sunglass Hut stores achieved reliable growth in the region.
Long-Term Outlook
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.