PARIS—EssilorLuxottica held its third quarter/9-month earnings call yesterday, announcing consolidated revenue of €6,437 million for the third quarter of 2024, a year-on-year increase of 4.0 percent at constant exchange rates compared with the same period last year. In the first nine months of 2024, reported revenue was €19,727 million, up 4.9 percent versus the same period of 2023, backed up by what the company identified as positive growth across all channels and regions. According to the company, the third quarter delivered solid top line growth among all regions and channels, although they noted that overall growth was hindered by the volatile market in China and continued weak sunglass sales in the U.S.

“In the third quarter, we maintained solid momentum, with all regions and businesses contributing to steady growth, fueled by our commitment to innovation and excellence,” said EssilorLuxottica's Francesco Milleri, chairman and CEO, and Paul du Saillant, deputy CEO.

The traditional eyecare/eyewear business advanced close to the group's target pace, with EMEA and most of the emerging markets at the forefront. Innovations gave a material additional contribution, the company said, with Stellest and Ray-Ban Meta both growing at an accelerated pace.The company also noted that the upcoming launch of Nuance Audio glasses with auditory technology, which is anticipated in late 2024 or early 2025, is expected to deliver breakthrough innovation.

“We solidified our positioning in the med-tech space, while preparing for the acceleration of the business in the near future, with our myopia management offering and smart glasses roll-out, Nuance Audio launch, Heidelberg Engineering and Supreme additions to the group’s portfolio," Milleri and du Saillant added. "The long-term partnership between EssilorLuxottica and Meta continues to write the bold story of smart glasses as the disruptive category in digital eyewear.

“Welcoming 1,000 new talented colleagues from the acquired companies strengthens our collective expertise," they added. "We’re also proud to be once again recognized as one of the top-50 companies on Fortune’s 'Change the World' list.”

Meta Platforms, Inc. (NASDAQ: META) and EssilorLuxottica recently advanced Ray-Ban Meta smart glasses with feature updates and a broader selection of product offerings and partnerships. Last month, as VMAIL reported, EssilorLuxottica entered into a new long-term agreement that extends its partnership with Meta Platforms, under which the parties agreed to collaborate into the next decade to develop multi-generational smart eyewear products.

In a call with financial analysts, Stefano Grassi, EssilorLuxottica chief financial officer, commented on the company's partnership extension with Meta and where it may be headed in the future.

“We are pleased to enlarge the duration of our partnership with Meta,” Grassi said. “It’s a journey we will be on together that will last quite a few years. It may also encompass other brands. We are very hopeful and confident that it will be a successful journey together.”

Overall, Professional Solutions recorded revenue of €3,017 million in the third quarter, up 3.4 percent compared with the third quarter of 2023, the company shared. All regions were reported as positive in the quarter. North America and Latin America followed a broadly similar trajectory compared with previous quarters. EMEA slightly decelerated from the first half, and the performance in Asia-Pacific was affected by weakening macroeconomic conditions across Greater China, the company said. Innovation continued to demonstrate strength in the lens category, with Varilux XR, Transitions Gen S and Stellest leading the way, with a strong performance also by Ray-Ban Meta wearables.

Direct to Consumer reported revenue of €3,420 million, up 4.6 percent compared with the third quarter of 2023. All regions contributed to growth in the quarter, with the group progressing broadly in line with the first half of the year, above 4 percent in terms of comparable-store sales, the company advised. North America confirmed a positive trend in optical, while sun remained negative in the quarter but turned positive in September.
 
EMEA rose mid-single digit, with optical banners continuing to progress and the sun business back to healthy growth. Latin America accelerated on the back of the sun business, while Asia-Pacific was aligned to the slightly positive pace of the first half. E-commerce grew at the same pace as the entire group, with EMEA being the best performing region. North America posted revenue of €2,854 million in the third quarter of 2024, up 1.6 percent compared with the third quarter of 2023 and in line with the trajectory of the first half, the company stated.

In Professional Solutions, the eyewear business was sustained by the solid growth of prescription frames but slowed by the negative performance of the sunglasses category as a reflection of the overall uncertain macroeconomic backdrop, according to the company. Ray-Ban Meta wearables represented one of the strongest drivers of the quarter. On lenses, the new generation technologies again bolstered the growth of their respective families with Varilux XR and Transitions Gen S gaining further momentum. Trends in the key accounts and partner ECPs remained healthy, while the non-partner independent channel faced some pressures.

As of June 30, 2024, EssilorLuxottica reported a total worldwide store count of 17,664, including 3,820 in North America. The company also confirmed its target of mid-single-digit annual revenue growth from 2022 to 2026 at constant exchange rates, targeting a range of €27 billion to €28 billion, and expects to achieve an adjusted operating profit as a percentage of revenue in the range of 19 percent to 20 percent by the end of that period.

“As we enter the fourth quarter (of 2024) with confidence, we remain on track with our long-term targets and continue driving meaningful transformation for the years to come,”  Milleri and du Saillant said.