EssilorLuxottica (EU:EL) shares rose 2.1% by 07:43 GMT after the eyewear group reaffirmed confidence in its growth outlook, despite reporting second-quarter revenue that came in slightly below analyst expectations.
The company generated first-half revenue of €14.82 billion, narrowly missing the consensus estimate of €14.91 billion. Second-quarter revenue increased 8.7% at constant exchange rates, below analysts’ expectations for 10.1% growth.
While revenue disappointed, profitability exceeded forecasts. Adjusted operating profit reached €2.75 billion during the first half, comfortably ahead of the €2.44 billion consensus estimate and representing growth of 15% at constant exchange rates.
On a constant currency basis, first-half revenue increased 9.7% compared with the same period in 2025, rising to €14.82 billion from €14.02 billion. Reported second-quarter revenue totaled €7.69 billion, an increase of 7.2% year over year.
“We’re proud to report a successful first half, delivering nearly double-digit revenue growth while increasing adjusted operating profit by 15% at constant currency,” said Francesco Milleri, Chairman and CEO, and Paul du Saillant, Deputy CEO.
During the earnings call, management explained that first-half gross margins benefited by around 60 basis points from U.S. tariffs, with part of that positive impact expected to continue into the second half of the year.
The company also expects margins to strengthen further through ongoing supply chain improvements, greater operating scale and a more favourable product mix driven by increasing demand for wearable technologies.
Management struck an optimistic tone on sales, noting that trading in July had begun strongly and expressing confidence that revenue growth would continue through the remainder of 2026. Discussing recent performance, executives said they had experienced “a good month of July.”
EssilorLuxottica also expects stronger contributions from its Stellest myopia management lenses in the U.S. following the activation of its largest customer accounts. A broad innovation pipeline—including new Varilux lenses, AI-powered smart glasses, the September launch of Nuance Second Generation and further developments within its medical technology business—is also expected to support future growth.
The Direct-to-Consumer division continued to outperform the Professional Solutions business, with comparable-store sales accelerating to 8.0% growth in the second quarter from 7.0% in the first. Both optical and sunglasses brands contributed evenly across regions. North America, Europe, the Middle East and Africa (EMEA), and Latin America all recorded high-single-digit growth, while Asia-Pacific delivered double-digit expansion, supported by the consolidation of Top Charoen’s retail network in Thailand.
The company’s myopia management lens portfolio expanded 24% during the second quarter, while revenue from AI glasses almost doubled compared with the previous year. Adjusted operating margin increased to 18.6% in the first half, or 18.9% at constant exchange rates, representing an improvement of 80 basis points. Free cash flow also strengthened, rising to €1.07 billion from €960 million in the first half of 2025.
Commenting on the outlook, Bernstein analysts said: “The positive outlook across both top line and margins reinforced on the call could bring the name back on investor’s radars, even if today’s results seem priced in.”
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