Full Year 2025 EssilorLuxottica SA Earnings Call Transcript
Key Points
- Essilorluxottica (ESLOF) achieved a record revenue growth of 11% at constant currency for the full year 2025, with a notable 18% increase in the fourth quarter.
- The company sold over 7 million units of AI glasses in 2025, showcasing exponential growth driven by strong brands like Ray-Ban and Oakley.
- Essilorluxottica (ESLOF) reported a strong free cash flow of EUR2.8 billion, EUR400 million higher than the previous year.
- The company has a robust logistics and distribution network with 18,000 retail stores and 300,000 wholesale partners, enhancing its market reach.
- Essilorluxottica (ESLOF) is expanding its scope into MedTech and data-driven solutions, positioning itself as a leader in health and human performance.
- The company faced a EUR300 million headwind from US tariffs and adverse exchange rates, impacting its financial performance.
- Essilorluxottica (ESLOF) experienced a 260 basis point decline in gross margin in 2025 compared to 2024, primarily due to tariffs and the impact of AI glasses.
- The operating profit margin decreased by 70 basis points at constant FX and 100 basis points at current exchange rates.
- The company anticipates continued currency headwinds in 2026, particularly due to the US dollar's devaluation against the euro.
- Initial investments in MedTech and wearables segments have increased OpEx, impacting short-term profitability.
Hello, everybody. This is Giorgio Iannella from the IR team. Thank you for joining EssilorLuxottica full year 2025 results management call. The Group Chairman and CEO, Francesco Milleri; the Deputy CEO, Paul du Saillant; and the CFO, Stefano Grassi, will walk you through the business and financial highlights of last year.
After their presentations, there will be a 30 minute Q&A session. (Operator Instructions) With that, I hand it over to Francesco.
Welcome back, everyone, and thank you for joining us today. I'm pleased to reconnect with you and to share where we stand with the execution of our new strategy, which is clearly driving the group business momentum.
This is in line with our plans, and I believe it will become more and more visible in the near future as the new projects, products and medical services will translate directly into numbers.
2025 marked a year of sharp
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