In a significant move that underscores the growing intersection between technology and eyewear, EssilorLuxottica SA has announced that Meta Platforms Inc. is contemplating acquiring a stake in the world’s leading eyewear manufacturer. This strategic alliance would bolster Meta’s ambitious venture into smart glasses, an area where the tech giant is keen to expand its footprint.
The revelation came from EssilorLuxottica’s Chief Executive Officer Francesco Milleri during an analyst call late Thursday. Milleri’s comments follow weeks of industry buzz concerning the future intentions of the Facebook parent company. However, Meta representatives have so far remained tight-lipped about the potential deal.
The news sent ripples through the financial markets, with EssilorLuxottica shares soaring by as much as 8.1% in Paris on Friday—their most substantial increase in over two years.
For those following the trajectory of both companies, this burgeoning partnership comes as no surprise. EssilorLuxottica and Meta have enjoyed a collaborative relationship for several years. Their synergistic efforts first bore fruit in 2021 when they introduced the Ray-Ban Stories smart glasses. This partnership not only promises to propel Meta further into the realms of virtual and augmented reality but also enhances EssilorLuxottica’s market visibility, brand reach, and financial health.
“We are proud that a company that knows us very well, after years of partnership, is convinced that our company can grow and do much better in the future,” Milleri noted, emphasizing the mutual benefits of the potential investment.
Earlier this month, Bloomberg had reported speculation that Meta could be eyeing up to a 5% stake in EssilorLuxottica. As Milleri noted, if Meta decides to proceed, it would acquire shares directly from the market, though details regarding the extent and timing of such an acquisition remain undisclosed.
The burgeoning smart glasses marketplace has other significant players vying for attention. Snap Inc., known for its Spectacles, has been dipping its toes into mixed-reality eyewear for years. Meanwhile, Apple Inc. joined the fray earlier this year with its Vision Pro headset.
EssilorLuxottica’s performance indicators paint a robust picture: The eyewear titan posted an adjusted net income of €1.75 billion ($1.9 billion) for the first half of the year, marking a 10.6% increase from the same period last year. Revenues matched analysts’ projections, coming in at €13.3 billion. The company’s growth was particularly strong in Europe, the Middle East, and Africa, with a 7.9% revenue surge in the second quarter. This robust performance offset slower growth in North America, where stores like Sunglass Hut experienced a decline in comparable-store sales.
Collaboration between EssilorLuxottica and Meta has yielded notable advancements in smart eyewear. The 2021 release of Ray-Ban Stories allowed users to capture photos and videos, listen to music, and take calls, all housed within the iconic Wayfarer frame. The evolution of this product line has incorporated MetaAI, an artificial intelligence assistant fueled by Meta’s Llama AI model.
As the tech and eyewear sectors converge, this potential stake by Meta in EssilorLuxottica signals a promising fusion of innovation and tradition, setting the stage for further groundbreaking developments in the smart glasses arena.
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