PARIS—EssilorLuxottica (Euronext: EL) announced its 2024 fourth quarter and full-year financial results, which demonstrated strong fourth quarter revenue performance of €6,781 million, an increase of 9.2 percent at constant exchange rates, and 2024 full-year revenue of €26,508 million, a 6.0 percent increase year-over year. North American revenue grew 7.8 percent in the fourth quarter of 2024, recording its best quarter of the year in both the direct-to-consumer and professional solutions segments, the company noted, with overall growth boosted by the consolidation of Supreme from VF Corporation, as reported in VMAIL in October. The company advised that its direct-to-consumer segment outperformed the professional solutions segment with a 12.7 percent increase, compared with a 5.5 percent rise in professional solutions. Brick-and-mortar comparable-store sales advanced by 5 percent in both the fourth quarter and the full year, the company said, sustained by positive results of optical banners throughout the full year and the recovery of the sun business in the fourth quarter at Sunglass Hut in North America.

“We celebrate another year of remarkable achievements, with our fourth consecutive year of top line growth on track with our targets, including a strong acceleration in Q4, with all regions and businesses contributing to our momentum, followed by new record high in the group’s profits,” said Francesco Milleri, chairman and CEO, and Paul du Saillant, deputy CEO at EssilorLuxottica.

Contributing to revenue growth was the early success of Ray-Ban Meta smartglasses, the company noted. Since its launch in September of 2023, Ray-Ban Meta smartglasses have sold a reported 2 million units with strong acceleration continuing in 2024, according to the company. “This product is becoming part of our daily lives,” Milleri told investors on a conference call.

The company also recently launched Nuance Audio Glasses, as reported in VMAIL, a new smart eyewear category targeting individuals with mild to moderate hearing loss. After receiving the FDA clearance and EU certifications, Nuance Audio glasses will be available for purchase in the U.S. and key European countries starting from the first quarter of 2025. “We have great expectations based on how the consumers are responding to this product,” said Milleri.

EssilorLuxottica improved profitability in 2024, with an adjusted operating margin of 17 percent at constant exchange rates, the company noted. Adjusted operating profit rose 9.4 percent to €4.414 million, while adjusted group net profit increased by 9.8 percent to €3.12 billion. As for products, all major categories positively contributed to the full year revenue performance at constant exchange rate, the company said. Optical yielded approximately three-fourths of total group’s revenue, sun at 23 percent and the rest being represented by apparel, footwear and accessories (including Supreme brand) and smartglasses (Ray-Ban Meta). Among frame brands, Ray-Ban stood out thanks to ramping-up smartglasses, while among licenses Miu Miu, Chanel and Swarovski were the best performers. As for the lens category, innovation-driven brand-based Stellest, Varilux and Transitions were the main drivers, the company said.

The group said its strategy remains focused on “disruptive innovation,” with 2024 being another year of expansion for two new product categories: myopia management solutions and smartglasses. During 2024, the group presented the results of a five-year clinical study of its Stellest lenses, demonstrating conclusive evidence of their efficacy in slowing down myopia progression in children. As for smartglasses, the partnership with Meta Platforms has been extended, the company noted, entering into a new long-term agreement, under which the parties will collaborate into the next decade to develop multi-generational smart eyewear products. EssilorLuxottica ended 2024 with €2.25 billion in cash and cash equivalents and a net debt of €10.97 billion compared with a net debt of €9.10 billion at the end of December 2023.

“As we look ahead, we are entering an era of unprecedented opportunities, powered by our global community of over 200,000 passionate colleagues. Our commitment to med-tech, smartglasses and iconic brands has never been stronger. With Ray-Ban Meta redefining digital eyewear and FDA-cleared Nuance Audio creating an entirely new category, we are pioneering the future,” said Milleri.

“The exponential growth of Stellest alongside strategic acquisitions, including Heidelberg Engineering, Espansione Group, Pulse Audition and now Cellview, continue to expand our medical and clinical expertise, enabling us to improve hundreds of millions of lives worldwide," he added. "With Supreme now part of our portfolio, and the newly extended trust of key partners including Diesel, Dolce & Gabbana, Michael Kors and Prada, we are setting new standards in desirability, cultural influence and technology adoption.”

The company confirmed its target of mid-single-digit annual revenue growth from 2022 to 2026 at constant exchange rates, targeting a range of €27 billion to €28 billion, and expects to achieve an adjusted operating profit as a percentage of revenue in the range of 19 percent to 20 percent by the end of that period.

“As we step into the new year with confidence, we remain on track with our long-term targets and are committed to driving meaningful transformation for years to come," Milleri said.