On Thursday, after the European market opened, the world’s largest eyewear manufacturer, EssilorLuxottica (EPA:EL), saw its shares surge by more than 5%. This came after the company disclosed that sales of the AI glasses launched in collaboration with American tech company Meta Platforms (NASDAQ:META) surged in 2025, signaling the increasing popularity of AI wearable devices among consumers.
EssilorLuxottica’s earnings report showed that its AI glasses shipments in 2025 exceeded 7 million units, more than three times the combined sales of around 2 million units in 2023 and 2024.
Since 2019, EssilorLuxottica has been a partner with Meta for AI glasses. The two companies first launched smart glasses under the Ray-Ban brand in 2021 and later released a second-generation upgrade in 2023. In June of the previous year, their partnership expanded to include more brands, with the introduction of Oakley smart glasses aimed at athletes.
As the AI wave continues to rise, the prospects for glasses as a platform for AI devices look increasingly bright. In September of last year, Meta introduced the next-generation Ray-Ban smart glasses, which can be controlled through gestures and neural technology via a wristband. One of the lenses is equipped with a small display screen.
Meta stated in January that due to “unprecedented” demand for the $799 Ray-Ban Meta smart glasses in the U.S. market, it delayed the planned international launch, originally set for early 2026.
Last month, there were market rumors that, as sales of the Ray-Ban smart glasses steadily increase, Meta and EssilorLuxottica are discussing plans to double the annual production capacity for AI glasses, aiming to increase it to 20 million units or more by the end of this year. The two companies have also discussed the possibility of exceeding 30 million units per year if demand proves strong enough.
It is worth noting that concerns over the impact of the AI glasses’ sales surge on profit margins led to a more than 20% decline in EssilorLuxottica’s stock price over the past three months. RBC Capital Markets analysts have pointed out that the gross margin of the Ray-Ban Meta smart glasses is much lower than that of the eyewear giant’s broader product line, and the company may need to rely on rising prices and shipment volumes to offset cost pressures.
The latest earnings report revealed that, influenced by U.S. tariffs and the expanded sales of AI glasses, EssilorLuxottica’s adjusted profit margin for fiscal year 2025 is projected to be 16%, a decrease of 70 basis points compared to 2024, based on constant exchange rates.
During the earnings call, Stefano Grassi, EssilorLuxottica’s Chief Financial Officer, told analysts, “I believe that, both internally and externally, we will have the capacity to meet the demand in the coming years, and we are planning based on this assumption, maintaining close cooperation with Meta.”
Although the company did not disclose specific production targets, Grassi added, “As we have seen in recent years, we do expect that as product innovation advances, the product price mix will continue to improve.”
In its financial guidance, EssilorLuxottica expects steady overall revenue growth over the next five years, with adjusted operating profit maintaining a similar growth pace.