ESLOF - EssilorLuxottica: New Collaborations

Summary

• There is a new ten-year license agreement between Swarovski and EssilorLuxottica. The company also extended its partnership with Ferrari and Brunello Cuccinelli.
• EssilorLuxottica confirmed its 2026 guidances.
• Irrelevant litigation with the French authority. Our buy rating is then confirmed.

Since our initiation of coverage with a buy rating called EssilorLuxottica ([[ESLOF]], [[ESLOY]]), a combination between value and growth , the company is up by almost 25% compared to an average S&P 500 return of 0.88%. In the meantime, here at the Lab, we provided various follow-up notes to support our long-term investment thesis. Aside from our comment on the half-year performance and the Q3 results release , in early September, the company hosted a capital market day. EssilorLuxottica's CMD was the first one without Del Vecchio (Luxottica founder and the company's CEO & President); however, the world's largest producer and retailer of frames and glasses fully confirmed its long-term targets and was pretty in line with our buy case recap.

1. Francesco Milleri's first message, the new CEO and Del Vecchio's right hand, was related to inorganic acquisitions as a key value driver for growth;
2. Still related to M&A, here at the Lab, EssilorLuxottica was still forecasting significant synergies with GrandVision's integration ;
3. There was a positive reiteration of the company's 2026 guidances with forecasted top-line sales in the €27 and 28 billion range and an adjusted operating profit margin in the 19% and 20% range.
4. And more importantly, EssilorLuxottica extended its partnership with Armani.

The last point might seem part of the day-to-day business; however, we believe it was a sign of continuity that traced the founder's path. As already mentioned:

the first collaboration between the two houses dated back to 1988 and marked the beginning of a revolution. Indeed, glasses were no longer viewed just as a corrective medical device, but as a fashion accessory to express personality and style. Thus, the industry has been completely reshaped by a new product category. The new licensing agreement for the development, production and global distribution of glasses under the Armani brands will last another 15 years.

Source: Mare Evidence Lab's previous publication - CMD follow up

New Collaborations

Armani Group's renewal collaboration marked the path for other licensing agreements to renew. Indeed, in the period, EssilorLuxottica communicated:

For further details see: