Shares of EssilorLuxottica SA have faced downward momentum as investors reassess competitive risks from major technology firms developing smart-glasses, according to a Bernstein research note released on Wednesday. The note highlighted concerns that increased attention on product launches from consumer-tech companies is compressing valuations for the maker of Ray-Ban eyewear.
Bernstein retained a "Market-Perform" rating on the stock and left its price target unchanged at e2 82 250. The brokerage warned that technology players - specifically Apple, Google, Samsung and Alibaba - could alter the industry landscape as they invest in wearable eyewear that blends hardware, software and services.
In its analysis, Bernstein described the growth of smart glasses as a "fundamental threat" to EssilorLuxottica's traditional model. The note argued that consumer-tech companies may create new supply chains and, in doing so, bypass established eyewear brands. That dynamic, the analysts said, raises the prospect of increased competition at the retail level and a shift in distribution patterns that could affect store productivity.
Bernstein also cautioned that a move toward greater wholesale distribution could weigh on the performance of company-operated stores while amplifying direct retail competition from technology firms. Even if smart glasses do not achieve the same ubiquity as smartphones, the brokerage suggested the structural effects on conventional eyewear markets could be enduring, with new suppliers and competitors emerging across the value chain.
Beyond the competitive narrative, Bernstein pointed to operational issues apparent in EssilorLuxottica e2 80 99s full-year 2025 results. Analysts flagged faster-than-expected margin dilution, which they attributed in part to a strategic push into wholesale channels. They also noted risks related to retail cannibalization within the company's roughly 18,000-store network, a factor that could further pressure margins and store-level productivity.
Investors tracking the stock have reacted to these combined concerns - rising competitive pressure from tech entrants and signs of operational strain - by re-evaluating expectations for EssilorLuxottica's growth trajectory and valuation multiples.
Summary
Bernstein's research note maintained a Market-Perform rating and a e2 82 250 price target on EssilorLuxottica while warning that smart-glasses development by Apple, Google, Samsung and Alibaba represents a structural competitive threat. The brokerage highlighted valuation compression, margin dilution tied to wholesale expansion, and risks of retail cannibalization across the company's store network.
Key points
- Bernstein left its Market-Perform rating and e2 82 250 price target unchanged.
- Analysts called smart glasses a "fundamental threat," noting that tech companies could build new supply chains and bypass traditional eyewear brands.
- Operational concerns include margin dilution linked to a wholesale push and potential retail cannibalization across roughly 18,000 stores.
Risks and uncertainties
- Competitive risk: Entrants from consumer-tech companies could disrupt the established eyewear industry structure.
- Operational risk: Margin dilution tied to the company's shift into wholesale channels could continue to pressure profitability.
- Retail risk: Cannibalization within the company's extensive store network could reduce store-level productivity and sales.