EssilorLuxottica hits record high after Meta AI glasses help drive sales beat

By Gianluca Lo Nostro (Reuters) -Shares in Ray-Ban maker EssilorLuxottica hit an all-time high on Friday, surging over 10% after the eyewear giant's record quarter showed sales of its Ray-Ban Meta smart glasses gaining momentum. The Franco-Italian group reported on Thursday third-quarter sales growth of 11.7% from a year ago to 6.9 billion euros ($8.1 billion), beating expectations and marking its best quarterly performance ever. The AI-powered glasses contributed over four percentage points to sales growth, said Chief Financial Officer Stefano Grassi, with demand prompting EssilorLuxottica to accelerate production capacity plans for the glasses ahead of schedule. EssilorLuxottica's shares were up 11.7% by 0754GMT, trading up to 308 euros, and were on track to rise the most in over eight years. That would translate to almost 15 billion euros in value added to the company's 126.1 billion market capitalization. J.P. Morgan analysts said in a note to investors the smart glasses were now a "material growth driver" while the company's core business remained resilient. The latest Ray-Ban Meta models, priced from $379 to $799 for a new flagship version with built-in display, are currently sold in limited physical stores with expansion to Canada, France, Italy and Britain planned for early 2026. Barclays analysts predict smart glasses could become the most disruptive innovation since mobile phones, forecasting 60 million units sold globally by 2035. Equita analysts said in a research note they have upgraded their annual revenue forecast for wearables, and now expect an impact on the group's sales of about one billion euro this year. "The acceleration in third-quarter revenues and the level of confidence expressed on fourth-quarter and mid-term prospects are an important indicator of the success of the group’s strategic drivers," they said. EssilorLuxottica shares have gained 17% since January as of Thursday's session. ($1 = 0.8540 euros) (Reporting by Gianluca Lo Nostro, additional reporting by Laura Contemori; Editing by Milla Nissi-Prussak and Matt Scuffham)

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