Notable Performance in All Regions

Even though the highest revenue was earned by the North American Region (+4,2%) through retail and wholesale sales, the notable constant exchange rate was recorded in Asia-Pacific (14,3%) followed by Latin America (+9,9%). The key drivers for this result are the markets of Brazil and China. EMEA had a growth rate of +8,2% in 2023. EssilorLuxottica SA owns over 5.984 stores in EMEA, 3.832 in North America, 2.106 in Latin America, and 1.444 in the Asia-Pacific region, along with a total of 13.366 corporate stores and 4.223 franchising and others.

In the fourth quarter of 2023, the company had success through Varilux (XR lenses) and Ray-Ban Meta. Retail stores such as Target, LensCrafters, and Pearle accelerated in this quarter than the previous one, whereas Sunglass Hut is still in negative bounds but improving in tourist spaces. EMEA’s revenue was driven by the stellar performances of Varilux XR, Swarovski, and Ray-Ban Meta. Italy, Spain, and the UK are the best performers in optical. There was a 9% increase in optical and sun lines. In Asia-Pacific, Japan, India, and South Korea showed a solid performance with Stellest doubling up and Bolon growing fast in China. The region, except Australia, is witnessing the strong growth of Sunglass Hut. Latin America is in the mid-teens with an improving Brazil and a well-balanced Mexico. Kodak and Varilux as well as Ray-Ban had the highest impact. Sun line had a double-digit growth in Brazil and a low single-digit in Hispanic Latam.

Revenue by Operating Segments

In the case of operating segments, in Q4, the revenue growth of Professional Solutions is +8,1% and Direct to Consumer is +6,1% at a constant exchange rate of +2,8% and +1,9% respectively. While considering the full year, both divisions had their stable contributions - Professional Solutions had a 48% share and Direct to Consumer with a 52% in overall revenue. The sales of physical brick-and-mortar stores have increased by over 5% with the Optical category being the sole breadwinner and the Sun line lying flat. E-commerce sales showcased an excess revenue of €1,65 million, contributing 7% of EssilorLuxottica SA’s overall turnover.

EssilorLuxottica SA owns eyewear brands including Ray-Ban, Persol, Vogue Eyewear, Arnette, Alain Mikli, Oliver Peoples, Oakley, Bliz, Native Eyewear, Costa, and Bolon, with a number of prestigious licensed brands such as Brunello Cucinelli, Giorgio Armani, Coach, Starck Biotech Paris, Swarovski, Tiffany & Co., Burberry, Scuderia Ferrari, Jimmy Choo, Michael Kors, Chanel, Dolce & Gabbana, Prada, Moncler, Ralph Lauren, Tory Burch and Versace.

The top lens brands of the group comprises Varilux, Essilor, Crizal, Stellest, Eyezen, Xperio, and Transitions along with Ray-Ban, Barberini, Oakley, and Shamir Optical. It has signed license agreements with Nikon and Eastman Kodak.

It has some noteworthy retail networks namely Target Optical, Pearle Vision and LensCrafters in North America; Apollo, Visilab, Pearle, Vision Express, Salmoiraghi & Viganò, Générale d'Optique, and David Clulow in EMEA; Mujosh, OPSM, and Laubman & Pank in Asia- Pacific; Óticas Carol, MasVisión, and GMO in Latin America; international banners like Ray-Ban, Sunglass Hut, and Oakley.

Latest and Future Product Launches

The group has witnessed success in its two latest product lines, Stellest’s myopia management lenses and Ray-Ban Meta smart glasses (released in September 2023). It is planning to look for its place in the hearing aids sector with its Nuance Audio glasses which address the mild-to-moderate hearing disability. The product saw a noteworthy showcase at the CES in Los Angeles in January 2024. The company dropped the upgraded version of the Varilux XR series.

EssilorLuxottica SA also signed new licensing agreements with major brands such as Moncler, Kodak (perpetual), and Jimmy Choo. There was a co-branding contract with Roger Federer for Oliver Peoples. In the retail sector, it worked on renewing the licensing contract with Target Optical shops and agreed on a joint venture with Chalhoub Group to build a retail business in the Gulf Cooperation Council area.

All the categories of the group performed in a broad perspective for the full year’s financial performance. There was a notable positive response from the Apparel-Footwear-Accessories (AFA) department. The business mix confirmed optical to be in an approximate range of three-fourths and sun at the remaining range of the total revenue.

Brands such as Crizal and Varilux performed well in Lenses, along with Stellest more than doubling its revenue. In the Frames line, Ray-Ban was in growth with its Ray-Ban Meta smart glasses. The licenses hiked by mid-teens driven by the brand communities of Giorgio Armani and Prada.

The group has launched the first collections for Scuderia Ferrari, Brunello Cucinelli, Jimmy Choo, and Roger Federer with Oliver Peoples. The latest investments include modern manufacturing facilities in Mexico, France, and Thailand.

Cover image: CES 2024, courtesy EssilorLuxottica SA's official website.