EssilorLuxottica: Meta Smart Glasses Fueling Growth

Eyewear giant EssilorLuxottica reported a significant boost in its third-quarter revenue thanks to its collaboration with Meta, driven primarily by the success of the Ray-Ban Meta smart glasses. According to the company, this partnership is not just a revenue stream but a catalyst reshaping the future of personal computing.

“Clearly there is a lift coming from Ray-Ban Meta wearables as a product category,” CFO Stefano Grassi stated during the company’s third-quarter earnings call, highlighting the growing importance of wearable technology in their portfolio.

The European eyewear company announced an 11.7% year-over-year increase in sales for the quarter, reaching 6.9 billion euros (approximately $8 billion), up from 6.44 billion euros in the previous year. Notably, wearables, including the Meta products, contributed over 4 percentage points to this growth. This substantial impact underscores the increasing consumer adoption and market potential of smart eyewear.

The partnership between Meta and Luxottica, initially forged in 2019, has expanded beyond the Ray-Ban brand. Luxottica’s Oakley brand recently joined the collaboration with the launch of the Oakley Meta HSTN smart glasses in June. Further expansion is anticipated, with a Prada-branded version of the smart glasses also in development. This multi-brand strategy allows for broader market penetration and caters to diverse consumer preferences.

Luxottica, known for its portfolio of popular brands, is aggressively promoting internet-connected glasses integrated with Meta’s AI-powered digital assistant. This technology enables users to perform a range of tasks, including playing music and taking photos, effectively mirroring functionalities found in smartphones. The convergence of eyewear and smart technology represents a significant shift in how people interact with digital information and the world around them.

“We believe that glasses will be the future,” Grassi asserted, emphasizing the long-term vision for wearables. He added that the wearables business is profitable, suggesting a sustainable model. “Glasses will materially replace most of the functionality that today we have embedded into our phones,” he predicted, indicating a potential disruption in the mobile device market.

Grassi’s outlook aligns with Meta CEO Mark Zuckerberg’s vision, who stated in July that “Personal devices like glasses that understand our context because they can see what we see, hear what we hear, and interact with us throughout the day will become our primary computing devices.” This perspective positions smart glasses as a key element in the future of personal computing, with implications for productivity, communication, and entertainment.

Looking forward to the fourth quarter, Grassi expressed “a good degree of optimism,” citing the upcoming rollout of new products unveiled at the Meta Connect event. These include the $799 Meta Ray-Ban Display glasses, featuring a small digital display controllable with a neural technology-powered wristband, as well as the $499 Oakley Meta Vanguard glasses and the $379 Ray-Ban Meta (Gen 2) glasses. The variety of offerings suggests a commitment to catering to diverse consumer needs and price points.

Grassi also noted that sales growth in North America during the third quarter was primarily driven by the Ray-Ban Meta glasses, minimizing the impact of tariffs on product prices. This highlights the strength of the product line and its appeal to consumers in the region.

The company now anticipates reaching its initial target of 10 million unit capacity by the end of 2026 sooner than expected, demonstrating strong consumer demand and market momentum.

“The overall ecosystem of wearables is going to bring not only revenue associated with the hardware but also the revenue associated with lenses” and over time from services tied to AI,” Grassi explained, highlighting the potential for long-term revenue growth and diversification.

EssilorLuxottica shares saw a 2.4% increase on Thursday, reflecting investor confidence in the company’s performance and future prospects.

Meta’s entry into the smart glasses market coincides with similar initiatives from other tech giants aiming to capitalize on the potential of this emerging technology. Alphabet partnered with Warby Parker in a $150 million deal to develop smart glasses powered by Google’s Gemini AI digital assistant. Not to be left behind, China’s Alibaba has unveiled its smart glasses utilizing its Quark AI assistant. Apple and OpenAI are also reportedly developing smart glasses.

The convergence of fashion, technology, and artificial intelligence is shaping the future of wearables, as companies race to develop innovative solutions with significant implications for how we interact with the world.