CHARENTON-LE-PONT, France—EssilorLuxottica announced yesterday that consolidated revenue for the first quarter of 2024 was €6,335 million, representing a year-on-year increase of 5.5 percent at constant exchange rates compared with the first quarter of 2023. Francesco Milleri, chairman and CEO, and Paul du Saillant, deputy CEO at EssilorLuxottica commented, “We’re pleased to report another solid start to the year for the company, with every geography and business contributing to the positive performance.” The initial quarter of 2024 grew mid-single digit in line with the company’s long-term guidance.

The top performing regions were EMEA, Asia-Pacific and Latin America, while North America saw low-single digit growth. The results of the two segments, Professional Solutions and Direct to Consumer, were broadly aligned.

The executives said, “Building on these results, and thanks to our strong executive team and our 200,000 talented colleagues, we continued to make bold and transformational moves, driven by a strong pipeline of innovation with new categories, digital solutions and products, including Stellest, Varilux XR series and the recently launched Transitions Gen S.

"We further consolidated our luxury portfolio with the renewal of licensing agreements with trusted partners such as Dolce & Gabbana and Michael Kors, and we improved our retail presence following the acquisition of Washin in Japan. Also, with Ray-Ban Meta and Nuance Audio showcased in the last few hours to the members of the U.S. Congress at 'CES on the Hill' in Washington D.C., we are reinforcing our leadership beyond the boundaries of vision care and eyewear, while truly rewriting the story of the industry.

“With this positive momentum, we approach the first half of the year with optimism and remain confident in our strategic vision and our ability to deliver on our long-term outlook,” the two executives said.

Professional Solutions recorded revenue of €3,080 million in the first quarter of 2024, up 4.6 percent compared with the same period in 2023. Stellest and Varilux were the biggest contributors to the growth within the lens business, while Ray-Ban, Oakley, Prada and Swarovski were the most attractive frame brands to begin the year.

Direct to Consumer registered revenue of €3,255 million, up 6.3 percent compared with the first quarter of 2023. The performance of the segment was balanced between the physical network and e-commerce. Brick-and-mortar comparable-store sales advanced at approximately 5 percent. The optical banners led the growth as sunwear continued to be impacted by the weak performance in North America. E-commerce returned to a more appealing growth profile fueled by at double digit growth powered by Meta.

“The U.S. is a very important market for Ray-Ban Meta,” the executives said on a conference call. “One-third of Ray-Ban Meta have been sold online.”

North America posted revenue of €2,875 million, up 1.7 percent compared with the first quarter of 2023 (+0.6 percent at current exchange rates), on top of the strongest quarter of last year when revenue grew 7 percent versus 2022.

The Professional Solutions segment was up low-single digits in the quarter. The optical side drove the results coupled with the new product launches. Varilux XR continued to gain momentum driving the favorable momentum for the entire brand, especially in the independent channel. The demand for the new Ray-Ban Meta smart glasses continued to beat expectations. ECPs were particularly excited about Jimmy Choo’s glamourous styles with the brand hitting the ground running from March. The overall results were overshadowed by weak trends in the sunglasses category, predominantly affecting the department stores and sport channels, the company said.

Once again, the growth of the Direct to Consumer segment was sustained by the optical business. Insurance coverage continued to play an important role in the buying decisions of consumers with LensCrafters, Target Optical and Pearle Vision well prepared to leverage the opportunity. EyeMed kept growing, with the number of lives covered climbing to over 80 million in 2024. Sunglass Hut continued to face feeble demand and remained negative in the quarter with the international locations representing the brighter spot and driving the slight improvement compared to the fourth quarter. The e-commerce business returned to growth led by the "excellent performance" of Ray-Ban Meta on the brand’s website, the company said.

EMEA posted revenue of €2,321 million, up 8.5 percent compared to the first quarter of 2023, accelerating from the fourth quarter of last year. The consistent performance of the Professional Solutions segment sees the business in excellent shape. The growth was broadly balanced between the different product categories and on a geographical level.

Varilux was the biggest contributor of the growth in lenses boosted by the excellent take up of the XR series. The co-branded campaign Varilux | Persol further elevated the brand’s overall visibility. Swarovski was able to rely on one of the top performing frame collections confirming the brand’s strong appeal among consumers. The new Oakley Sphaera style, targeting increased comfort and an extended field of vision, was also off to a promising start from February.

Direct to Consumer delivered an excellent quarter spanning both optical and sun, according to the company. The optical banners continued to grow high-single digit in comparable-store sales reaping the benefits from the optimized assortment in the stores aimed at providing higher value products to the consumer. Stellest has been rolled out in most countries and the mix of Transitions lenses increased again during the quarter. Lower discounts and the further development of the subscription model also underpinned the positive results. After closing two consecutive years of double-digit growth, the sunwear business started off 2024 equally well in the first quarter.

Asia-Pacific posted revenue of €768 million, up 8.2 percent compared to the first quarter of 2023 (+2.4 percent at current exchange rates), decelerating on a softer Direct to Consumer performance.The Professional Solutions segment was sustained by robust, double-digit performance of the Chinese business, which progressed across all main product categories. In Direct to Consumer, the Australian business posted mixed results broadly aligned with the fourth quarter of last year, the company said.

Latin America posted revenue of €371 million, up 10.9 percent compared to the first quarter of 2023 (+6.3 percent at current exchange rates), representing the best performing region in the quarter, supported by the price inflation effect of Argentina.

EssilorLuxottica also confirmed its target of mid-single-digit annual revenue growth from 2022 to 2026 at constant exchange rates 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.