EssilorLuxottica SA (EU:EL) said its move into medical technology could help restore its market valuation over time, following a significant decline in its share price in recent months.
Speaking at the company’s annual general meeting on Tuesday, Chief Executive Francesco Milleri pointed to several factors behind the drop of more than 40% from the record highs reached in November. These included U.S. tariffs, a weaker dollar, ongoing geopolitical tensions, and intensifying competition in the smart glasses segment.
Chief Financial Officer Stefano Grassi estimated that U.S. tariffs had a €300 million ($351 million) impact on the company last year.
Milleri suggested that investors have yet to fully appreciate the group’s transition into medtech, describing it as a necessary strategic evolution. “We were too big to remain … (confined to) this small market,” he said, referring to the company’s traditional focus on frames and lenses.
He added, “We are really pushing to go back to the (price) position that we deserve … but, at the same time, it will take some time to achieve that”.
Audio and Smart Glasses Highlight Future Growth Opportunities
The company’s market value has fallen to around €86 billion from €150 billion in November, when it hit a peak driven by optimism around smart glasses developed in partnership with Meta Platforms (NASDAQ:META).
Since then, rising competition in the segment has dampened investor sentiment. However, Milleri reaffirmed that AI-enabled eyewear remains central to the company’s long-term strategy and downplayed concerns about new entrants.
“A few big players have made product announcements generating buzz, but we haven’t seen any real competing products on the market so far,” he said.
He also highlighted the audio segment as an important area for expansion, with products extending beyond Nuance Audio glasses, which integrate hearing assistance for individuals with mild to moderate hearing loss.
Speaking separately to reporters, Milleri revealed that EssilorLuxottica had considered a potential investment in Amplifon but ultimately chose not to proceed.
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