(BFM Stock Exchange) – The specialist in corrective glasses and owner of the Ray -Ban brand delivered a first semester deemed encouraging with growth and profitability online with expectations. The Franco-Italian company has mainly given encouraging indications for the second half, with a series of growth initiatives that will rise in power.

Usually, delivering online results with expectations hardly causes market enthusiasm.

This Tuesday, July 29, Essilorluxottica climbed almost 6.5% at the end of the morning, the highest increase in CAC 40, after having delivered half -yearly results very close to the forecasts of analysts.

The Franco-Italian specialist in the corrective lenses and owner of the Ray-Ban brand gave growth of 7.3% excluding exchange effects in the second quarter and throughout the first semester. The consensus (the average forecast of analysts) tapped on an increase of 7.2% in the second quarter.

UBS nevertheless notes that North America, a key area for the group, has surprised positively, accelerating its growth at 5.5% excluding exchange effects (against an increase of 4.9% on the entire semester). The company explains that its sales to professionals accelerated in the second quarter in this region.

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Confirmed long -term objectives

Essilorluxottica also highlights the performance of its connected glasses with artificial intelligence (AI) Ray-Ban Meta, developed with the Meta digital giant. In the first semester, these glasses have more than tripled their turnover compared to the first six months of 2024.

The adjusted operating profit of the company increased by 7.1% excluding exchange effects in the first half to reach 2.53 billion euros. The corresponding margin is 18.1%, against 18.3% a year earlier. This profitability turns out to be in line with analysts’ expectations (18.1%). Excluding exchange effects, the current operating margin is 18.3%, stable over a year.

The company has seen its margins be shaken by the first impacts on customs duties and the rise of connected devices, the profitability of which is dilutive on the gross margin. But price increases and cost control (general costs have only increased by 1% over the period) made it possible to compensate for these unfavorable elements. UBS thus judges that the stability of the margin outside exchange effects has something to “reassure somewhat” the market.

At the end of this first semester, Essilorluxottica confirmed its long -term objectives, namely average annual growth in turnover of 5% excluding exchange effects between 2022 and 2026 and an adjusted operating margin located between 19% and 20% in 2026.

More than the publication strictly speaking, analysts retain several positive elements provided by the company’s management during the conference call held on Monday evening.

Acceleration of growth for smart glasses

“Beyond the results of the first semester online, we remember that the group saw an acceleration of growth in July compared to the second quarter with always solid progressions in the United States (growth in acceleration in the Lenscrafters distribution brand) and in Europe”, writes Oddo BHF.

Regarding Ray-Ban Meta glasses “Volume growth seems to have exceeded internal expectations, Essilorluxottica now seeking to adapt other factories outside of China to produce this product,” notes Bernstein. The design office writes that the company could convert production sites to Thailand to meet the high demand on this product, and design more than 10 million units by 2026.

Bernstein adds that management expects the growth of these glasses still accelerating with new products, such as IA Oakley Meta glasses. The management believes that these new glasses running at AI can make equal play in terms of volumes with the Ray-Ban Meta.

By the way, if these products are dilutive on the gross margin, the company argues that they nevertheless have a positive impact on the operating result, the profit by action and the cash generation, reports Bernstein.

In China, Essilorluxottica, saw its growth moderate in the second quarter with its Stellest range, which allows you to manage infant myopia. But the group will launch in the second half of a new generation of lenses called Stellest 2.0 “” which will revive the dynamics, “said Oddo BHF.

Towards higher margins in the second half

The broker also notes that the perspective of operational margin in the second half is better than at first. Essilorluxottica underwent the impact of customs duties in the second quarter but the price increases to compensate for these impacts were only passed at the end of the period. “This suggests a lesser impact (customs duties, editor’s note) in the second half and a better comparison profile over a year,” deduces the design office.

Ultimately, “the first semester 2025 went smoothly, the negative effects of customs tariffs and the composition of the portfolio on the margins having been attenuated by positive comments for the second semester 2025”, concludes Bernstein.

“The questions and answers of analysts therefore focused on the strategic growth programs of Essilorluxottica: intelligent glasses, hearing aids and myopia management. All these programs seem ready to accelerate in the next twelve months, just in time to compensate for the end of the positive effects of the integration of grandvision (a Dutch company distribution of optical products bought in 2022, Editor’s note) “adds the design office.

For Oddo BHF, the announcements of the company send “favorable signals” which “confirm the potential of the history” company’s stock market. The broker reiterated his advice to outperformance on the value, seeing a potential of more than 10% for the title over twelve months.