EssilorLuxottica SA

Financial Performance

5Y price score: (1)

10Y return: 62.1%

DATE RANGE:

EUR Per
Share

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159.1

52-week range

323.8

160.4

Your model inputs

Required return / cost of capital

FCFF terminal growth rate

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

5.1 %

Dividend Yield TTM

2.5 %

Market cap

73,719

Price / Earnings TTM

Price / Book TTM

1.9

PEG TTM

2.3

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

(38.9) %

8.2 %

62.1 %

Free cash flow per share growth

4.7 %

54.6 %

102.5 %

Earnings per share growth

13.1 %

2,521.1 %

42.3 %

Founded: 2,018

Employees: 193,693

Business Summary:EssilorLuxottica Société anonyme designs, manufactures, and distributes ophthalmic lenses, frames, and sunglasses in North America, Europe, Latin America, Asia, Oceania, and Africa. It operates in five segments: Wholesale, Retail, Lenses and Optical Instruments, Equipment, and Sunglasses and Readers. The Wholesale segment engages in the manufacture and wholesale distribution of luxury and sports eyewear. The Retail segment retails luxury and sports eyewear. The Lenses and Optical Instruments segment offers lenses and small equipment, including Varilux progressive lenses; Crizal antireflective, anti-smudge, and antistatic lenses; Transitions photochromic lenses; Eyezen lenses for users of computers, tablets, smartphones, and other connected devices; Xperio polarized sun lenses; and Nikon and Kodak corrective lens brands. It also provides lens edging and mounting instruments for opticians and prescription laboratories; optometry instruments for eye care professionals, schools, occupational medicine centers, military, and other institutions; and Transitions Signature Gen 8 photochromic lens, as well as develops solutions for online sales of optical products. The Equipment segment offers digital surfacing machines and lens coating machines to prescription laboratories, integrated optical chains, and lens manufacturers. The Sunglasses and Readers segment provides non-prescription sunglasses and reading glasses under the Foster Grant, Gargoyles, Magnivision, Corinne McCormack, Monkey Monkey, Ryders Eyewear, and SolarShield brands; Reebok, Steve Madden, Betsey Johnson, Nine West, Dockers, French Connection, Ironman, Rawlings, Bodyglove, Panama Jack, Marvel, and Disney; Bolon, Molsion, Qina, and Prosun brands; and Mujosh and Aojo brands. It has a network of 490 prescription laboratories and edging-mounting facilities. The company was formerly known as Essilor International Société Anonyme and changed its name to EssilorLuxottica Société anonyme in October 2018. EssilorLuxottica Société anonyme was founded in 1849 and is headquartered in Paris, France.

Fair Value Reference Estimate

Latest Earnings Call Takeaways

2026 Q2 (Jul 28, 2026)

1) Financial Performance Highlights
- Revenue growth of 9.7% at constant currency and 5.7% at current exchange rates for H1 2026. - Adjusted operating profit increased by 15%, with cash generation exceeding €1 billion. - Q2 revenue growth was 8.7% at constant currency, with North America, EMEA, and Latin America showing high-single-digit growth, while Asia Pacific achieved double-digit growth. - Gross profit margin improved by 10 basis points, with operating profit up 80 basis points at constant currency.

2) Strategic Developments and Innovations
- EssilorLuxottica is advancing into the oculomics field, integrating eye health with broader healthcare services, exemplified by the opening of a vision and eye health surgery center in Philadelphia. - A partnership with Applied Materials aims to develop intelligent optical systems for AI and AR wearables, enhancing their product offerings in smart eyewear. - Continued investment in R&D, particularly in myopia management and the launch of new products like Stellest in Japan and the U.S., which is now available in 11,000 doors.

3) Market Dynamics and Product Performance
- Strong performance in the eyewear segment, particularly with Ray-Ban and luxury brands like Miu Miu and Chanel. - The wearables category is experiencing exponential growth, with smart glasses sales nearly doubling in Q2. - The company is focusing on expanding its direct-to-consumer channels, with LensCrafters achieving high-single-digit comp sales for the 14th consecutive quarter.

4) Challenges and Operational Insights
- Some slowdown observed in large account sales in North America, but overall performance remains strong over a six-month period. - The company is managing inflationary pressures effectively, with no significant concerns regarding operating expenses for H2 2026. - Tariff refunds contributed positively to gross margins, with expectations for continued benefits in the second half of the year.

5) Guidance and Future Outlook
- EssilorLuxottica remains optimistic about H2 2026, supported by a strong innovation pipeline and continued productivity improvements. - The company anticipates a demanding comparison base but expects growth driven by new product launches and enhanced distribution capabilities. - Further details on the impact of tariffs and cost dynamics are expected in future communications.

Bottom line: EssilorLuxottica is positioned for robust growth, leveraging its strategic advancements in oculomics and wearables, while maintaining strong financial performance and operational efficiency. The outlook for H2 2026 remains positive, supported by innovative product launches and expanding market presence.

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