EssilorLuxottica has reported solid first-quarter growth, supported by rising demand for its AI-powered eyewear developed in partnership with Meta. The global eyewear group recorded revenue of approximately A$11.9 billion for the period, reflecting an 11 per cent increase on a constant-currency basis.

The result broadly aligned with market expectations, although growth came in slightly below some forecasts once currency impacts were taken into account. Analysts noted that underlying performance remained steady, with minor variations driven by exchange rate movements.

Sales were boosted by continued momentum in smart eyewear, particularly products under the Ray-Ban and Oakley brands. AI-enabled frames performed strongly across key regions including North America, Europe and Asia, while also supporting demand for other products within those portfolios. The company highlighted growth across markets such as China, India, Mexico and Colombia, and indicated further potential in Europe as its latest Meta-integrated models begin to reach more consumers.

Despite the positive sales figures, the company’s shares declined following the announcement, with US-listed stock falling by just over 3 per cent in afternoon trading. EssilorLuxottica has experienced a broader decline this year, losing around a quarter of its market value. This drop has been linked to increasing competition from companies such as Alibaba, as well as concerns about how investment in AI eyewear may affect profit margins.

Wider market conditions have also played a role. Luxury sector stocks have been under pressure due to uncertain consumer sentiment, particularly following geopolitical tensions earlier in the year. This environment has contributed to weaker investor confidence across several high-end brands.

Chief Financial Officer Stefano Grassi said that trading conditions in April have remained consistent with the first-quarter trend. He added that the company has not experienced significant disruption from global conflict, noting that while logistics required adjustments, manufacturing and distribution have continued without major issues. The company also reported no meaningful inflationary pressures linked to these events.

Beyond its focus on smart eyewear, EssilorLuxottica is continuing to expand in medical technology. Products designed to manage myopia in younger consumers recorded growth of 26 per cent during the quarter, helping to strengthen performance in important markets such as China.

Looking ahead, the company reaffirmed its medium-term objective of growing profits in line with revenue over the next five years. Chief Executive Francesco Milleri said the business remains confident in its direction, even as it navigates a challenging and uncertain global landscape.