By Helena Smolak
Ray-Ban maker EssilorLuxottica posted higher sales for the fourth quarter fueled by strong growth in North America and China.
The Franco-Italian eyewear group reported quarterly revenue of 6.78 billion euros ($6.92 billion), up 9.2% on year at constant currency. Analysts had forecast 6.68 billion euros in revenue, according to a Visible Alpha consensus.
In North America, which accounts for more than 40% of EssilorLuxottica's sales, fourth-quarter revenue rose 7.8% at constant currency to 3.15 billion euros. The company said its North American business had recorded its best quarter of the year, adding that the consolidation of Supreme also contributed to sales growth.
Meanwhile, the group said revenue in China jumped roughly 50% in the quarter, with strong demand for its Stellest myopia lenses. Sales in the Asia-Pacific region climbed 14% at constant currency to 864 million euros.
The company--which has luxury brands such as Chanel, Prada and Armani--is betting on artificial intelligence. EssilorLuxottica is in a long-term agreement with Meta Platforms, deepening a push into smart eyewear using AI features.
The group said Ray-Ban Meta wearables, which incorporate an AI assistant and cameras, reached 2 million units sold since their launch in 2023, with a strong acceleration in 2024.
Meanwhile, the company is also ramping up its focus on medical technology. Earlier this week, it acquired the ophthalmology diagnostics company Cellview Imaging. The group is also expanding into hearing care with its Nuance Audio device, which recently received FDA and EU clearance.
EssilorLuxottica posted a net profit of 2.36 billion euros for last year compared with 2.29 billion euros in 2023. The figure came in below analysts' expectations of 2.50 billion euros. Operating profit rose 9.4% at constant currencies to 4.41 billion euros. The company declared a dividend of 3.95 euros per share for 2024, flat from the year before.
The group confirmed its mid-term targets of mid-single-digit annual revenue growth through 2026 at constant exchange rates. The company also aims to deliver an adjusted operating margin between 19% and 20% by the end of that period.
Write to Helena Smolak at helena.smolak@wsj.com
(END) Dow Jones Newswires
February 12, 2025 13:20 ET (18:20 GMT)
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