Summary: EssilorLuxottica reported first-quarter revenue growth that broadly met market expectations but failed to reverse a slide in its share price as doubts remain about the growth prospects for smart glasses and the feasibility of the company’s near-term targets.
Shares in the Franco-Italian eyewear group fell roughly 5% in Paris on Thursday, making EssilorLuxottica the largest decliner on the blue-chip CAC 40 index. The decline followed a report that group revenue increased 10.8% at constant exchange rates in the first quarter of 2026.
Brand performance was led by Ray-Ban and Oakley, which the company said benefited from AI-enabled frames created in partnership with Meta. Those products were highlighted as top-performing within the group's frame portfolio.
Brokerage and analyst reaction to the quarterly figures was mixed. Italian brokerage Equita described the results as reassuring in terms of short-term slowdown risks, while cautioning that longer-term questions remain. "The questions about competitive pressure on wearables, the contribution to growth of other strategic projects and the resilience of consumption on traditional business remain open and to be monitored," Equita analyst Domenico Ghilotti wrote.
Morgan Stanley noted that trading in April was broadly in line with the first quarter, which helped reduce concerns about exit rates and the current operating environment. The company itself reiterated the outlook it provided in February, restating expectations for solid total revenue growth over the next five years alongside broadly aligned growth in adjusted operating profit.
Kepler Cheuvreux highlighted a tension between the reaffirmed longer-term growth guidance and the nearer-term pacing required to meet current fiscal expectations. The broker said that meeting consensus assumptions for the 2026 fiscal year implies more than 13% growth in the coming quarters, calling that a "demanding target" in light of tougher year-on-year comparisons. "Execution will hinge on the success of new smart glasses models," Kepler said.
The share price has already reflected investor caution: EssilorLuxottica’s stock is down about 29% year-to-date.
Contextual note: The company’s results and analyst commentary show investor focus on wearable technology execution and the resilience of traditional eyewear demand as key determinants of near-term performance.