Ray-Ban maker EssilorLuxottica confirms Meta interested in stake
👉 $EL.PA (EssilorLuxottica SA) confirmed $META (Meta Platforms Inc) is interested in buying a stake in the world’s biggest eyewear maker.
👉 CEO Francesco Milleri said that the US tech giant intends to become a shareholder in the French-Italian group potentially building on a years-long partnership to develop smart glasses.
👉 “We are proud that a company that knows us very well, after years of partnership, is convinced that our company can grow and make much better in the future,” he said in a conference call with analysts on Thursday.
👉 Speculations emerged earlier this month that the owner of Facebook is considering taking a stake of up to 5% in EssilorLuxottica. Milleri said the maker of Ray-Ban and Oakley sunglasses isn’t planning a capital increase dedicated to Meta and the US firm would buy shares on the market if it wants to become a shareholder.
👉 He didn’t elaborate on the size of the stake Meta may buy and on the timing of the purchase.
👉 The world’s biggest manufacturer and retailer of eyewear posted adjusted net income of €1.75 billion in the first half, 10.6% higher compared to the same period last year at constant exchange rates and higher than consensus. Revenues were in line with analysts’ forecasts at €13.3 billion.
👉 Performance in Europe, Middle East and Africa, where revenue jumped 7.9% in the second quarter compared to the same period a year prior, offset lower growth in North America, held back by a decline in comparable-store sales at Sunglass Hut, the company said in a statement on Thursday.
👉 EssilorLuxottica and Meta have been cooperating on smart glasses for a few years. In 2021, Meta unveiled its first Ray-Ban smart glasses set on the Wayfarer frame to let users take photos and videos, listen to music and answer calls. Newer glasses incorporate MetaAI, an artificial intelligence assistant based on its Llama AI model.
👉 “We spend a lot of time together,” Milleri said. We have “a strong relationship with Mark Zuckerberg and the top management of Meta.”
Read more ❓ www.bnnbloomberg.ca/business/2024/07/25/essilorluxottica-income-beats-as-investors-seek-clarity-on-meta/
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