PARIS, April 28 - EssilorLuxottica's CEO Francesco Milleri told shareholders at the company's annual meeting that he expects the group's share price to regain lost territory over time, despite a series of external headwinds and competitive pressures. He pointed to U.S. tariffs, dollar weakness, spreading military conflicts and rising rivalry in the smart-glasses market as factors that have weighed on investor sentiment.
Milleri also framed the group's ongoing expansion into medtech as a central reason for the share underperformance, calling the move a required transformation. "We were too big to remain framed in this small market," he said, referring to the traditional spectacles frames and lenses business. He added that once the medtech transition is complete, it will begin to yield benefits and support a recovery in the share price.
The company's stock has fallen sharply from its November peak, losing over 40% of its value after investors had driven the price higher on enthusiasm for its AI-enabled Ray-Ban Meta glasses. Since that surge, investor concerns have shifted toward the possibility that competition could erode EssilorLuxottica's early advantage in the category.
"A few big players have made product announcements generating buzz, but we haven’t seen any real competing products on the market so far."
Milleri sought to downplay competitive fears, noting that while announcements by other large companies have produced attention, tangible rival products have not yet appeared at scale in the marketplace.
The company has been collaborating with Meta Platforms since 2019 to develop successive generations of Ray-Ban-branded smart eyewear that combine cameras, audio and artificial-intelligence features. On pricing and positioning, Milleri said the group is working to restore the value it believes is appropriate for its products but acknowledged that this will require time. "We are really pushing to go back to the (price) position that we deserve ... but, at the same time, it will take some time to achieve that", he said.
Also noted in the discussion was the roster of external pressures that have affected the share price, including trade and currency dynamics as well as geopolitical instability. Management appears to be relying on the long-term potential of medtech and smart eyewear to deliver improvement in investor returns when the transformation reaches fruition.
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