EssilorLuxottica reported mixed results for the first half of the year, delivering a notable beat on adjusted operating profit while failing to meet analyst expectations for revenue. Shares rose 2.1% at 07:43 GMT after the company released its results.
On the top line, first-half revenue totaled €14.82 billion, slightly below the analyst consensus of €14.91 billion. Second-quarter revenue expanded 8.7% at constant exchange rates, underperforming the estimated 10.1% growth rate.
Profitability, however, outpaced estimates. Adjusted operating profit for the first half reached €2.75 billion, well above the €2.44 billion analysts had forecast, representing a 15% increase on a constant-currency basis.
Measured against the prior-year period, first-half revenue rose 9.7% at constant exchange rates from €14.02 billion in 2025 to €14.82 billion. On a reported basis, second-quarter revenue came in at €7.69 billion, up 7.2% year-on-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.
Management pointed to a roughly 60 basis point boost to first-half gross margins from U.S. tariffs, noting that some of that benefit is expected to extend into the second half. Beyond the tariff tailwind, the company anticipates further margin improvement driven by continued supply-chain efficiencies, scale effects and a more favorable product mix, particularly a greater share of wearables.
Executives described July as having started strongly and signaled confidence for continued growth in the second half, characterizing the month as "a good month of July." They also highlighted expected productivity gains from the Stellest operation in the U.S. now that the company’s largest customer accounts have been activated.
EssilorLuxottica outlined a pipeline of new and upgraded products intended to bolster sales, including new Varilux lenses, AI-enabled glasses and the September launch of Nuance Second Generation, alongside further developments in its med-tech business.
Segment performance varied. The Direct-to-Consumer business outperformed Professional Solutions, with comparable-store sales growth accelerating to 8.0% in the second quarter from 7.0% in the first quarter. Both optical and sun banners contributed evenly across regions.
Geographically, North America, EMEA and Latin America each delivered high-single-digit growth in the quarter, while Asia-Pacific posted double-digit gains, supported by the consolidation of Top Charoen’s retail networks in Thailand.
Within product categories, the company’s myopia management lens portfolio grew 24% in the second quarter, while revenue from AI glasses nearly doubled compared with the same period a year earlier. Adjusted operating margin expanded to 18.6% in the first half, improving by 80 basis points to 18.9% at constant exchange rates. Free cash flow reached €1.07 billion in the first half, up from €960 million in 2025.
Market commentary reflected the mixed nature of the results. "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," Bernstein analysts said in a note.
Key takeaways
- Revenue for the first half missed analyst estimates, with second-quarter constant-currency growth of 8.7% below the 10.1% consensus.
- Adjusted operating profit of €2.75 billion and margin expansion outperformed expectations, reflecting efficiency gains and favorable product mix.
- Management highlighted tariff-related margin benefits, ongoing supply-chain efficiencies, and product innovation—including AI glasses and Nuance Second Generation—as drivers for continued momentum.
Risks and uncertainties
- The revenue shortfall relative to analyst consensus introduces uncertainty around top-line momentum in the near term, which could affect investor sentiment.
- The roughly 60 basis point tariff tailwind that helped first-half gross margins may not persist fully, with management saying only some of the benefit is expected to carry into the second half.
- Execution risks tied to scaling productivity improvements, integrating retail networks like Top Charoen in Thailand, and launching new products such as Nuance Second Generation could affect expected sales and margin outcomes.