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EssilorLuxottica: Meta Could get on Board. The Future is Seen in Smart Glasses!

EssilorLuxottica makes the world sharper with its eyewear!
With an annual turnover of 26.62 billion euros, EssilorLuxottica is one of the largest manufacturers of eyewear. The group was formed in 2018 through the merger of Essilor and Luxottica. It sells its own frames, such as those from Ray-Ban and Oakley, as well as high-quality lenses. The portfolio includes more than 150 brands. With over 17,589 stores, the group has a strong direct sales network at a global level in North America, Europe, Africa, Asia-Pacific and Latin America. The Apollo optical chain, which is now part of EssilorLuxottica, is well known in Germany. As an eyewear manufacturer, the Group benefits from several structural growth drivers. One of these is the ageing population, which is driving demand for visual aids. At the same time, however, it will also be possible to sell higher-quality and more modern glasses if the global standard of living continues to rise. Digitalization is also positive for EssilorLuxottica in order to expand online sales on the one hand, but also to benefit from more screen use because the demand for eyewear is growing. Innovative glasses with blue light filters are in greater demand. Finally, increasing awareness of the importance of eye health is leading to higher demand for preventive and corrective products.


Supreme is intended to complement the portfolio. For these reasons, a lifestyle fashion brand is being purchased!
The eyewear manufacturer is constantly on the lookout for inorganic growth opportunities. It is currently looking to acquire Supreme for a good $1.5 billion from VF Corp. The special thing about this is that it is a provider of clothing that has nothing to do with the core business of ophthalmology. Essilorluxottica is buying a fashion brand at a time when it is suffering from consumer restraint. Supreme is known for its streetwear fashion. Rather, the purchase is about gaining access to a platform, large amounts of data and a connection to Generation Z. Supreme could then become a testing ground for Essilorluxottica when it comes to new products and technologies aimed at a younger clientele. Apparently, the Group has not been so well positioned in addressing Generation Z to date.

The market for smart glasses is growing by 20 percent. Is Meta getting involved and deepening its partnership?
EssilorLuxottica and Meta have been partners for several years. Both companies have been distributing smart glasses under the Ray-Ban Meta brand since 2021, addressing a new product category that has barely been penetrated to date but is growing by 20 percent per year according to expert estimates. The two companies currently sell more than 15 different Ray-Ban Meta glasses in three frames for prices starting at 329 euros. They are also available with prescription lenses. The smart glasses can be used to take photos and videos, make calls, listen to music or navigation commands and stream your own perspective live. The integrated Meta AI can provide information about an object that the user is looking at. According to the CEO of EssilorLuxottica, demand for the current Ray-Ban Meta is significantly better, as it has sold more in just a few months than the first generation did in two years. According to media reports, the two companies could deepen their cooperation by Meta acquiring a 5 percent stake in EssilorLuxottica. Meta would push its technical expertise more strongly into the consumer market and EssilorLuxottica would set itself apart from the competition with product innovations. The third generation of Ray-Ban Meta could then be launched towards the end of 2025. This is also about keeping other tech companies at bay, as Google is said to have asked whether Gemini AI will be integrated into future smart glasses.

EssilorLuxottica grows steadily and gains more imagination with smart glasses
The eyewear manufacturer is growing continuously thanks to the structural trends listed above and regular acquisitions. Revenue is also expected to increase from €26.62 billion to €29.90 billion and EPS from €7.09 to €8.86 between 2024 and 2026. This leads to a P/E ratio of 22 as at 2026. Smart glasses are a niche market, but one that is growing at a double-digit rate. This makes it attractive for EssilorLuxottica, especially as it secures the opportunity to be positioned at an early stage in a new technology trend towards smart glasses.

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