Bernstein warns smart glasses are a ‘fundamental threat' to EssilorLuxottica (EL)
Bernstein analysts labelled the rise of smart glasses a "fundamental threat" to EssilorLuxottica's business model, sending shares of the French optical giant down 4.2% on 23 April 2026. EssilorLuxottica (EL) is trading at €193.00, having closed the previous session at €201.50.
The research note, published on Wednesday, maintained a "Market-Perform" rating and a €250 price target. This follows BNP Paribas Exane's decision the day prior to lower its price target for EssilorLuxottica from €365 to €340, while keeping an "outperform" recommendation.
These pressures come as EssilorLuxottica has shed over 20% of its value year-on-year. Investor caution is amplified by operational concerns following its 2025 results, including margin dilution and the potential cannibalisation of its 18,000 retail stores.
Why smart glasses pose a fundamental threat to EssilorLuxottica
EssilorLuxottica is the global leader in eyewear, a French company that designs, manufactures, and distributes a vast array of products from corrective lenses to sunglasses and optical frames. With iconic brands like Ray-Ban, Oakley, and Varilux, the group generates its revenue by selling these items through an extensive network of retailers, including its own 18,000 stores, as well as independent opticians and larger retail chains. Essentially, the company equips our eyes to see better and in style, whether for vision correction or sun protection.
The primary driver behind today's share price movement is a research note from Bernstein, which has labelled the rise of smart glasses as a "fundamental threat" to EssilorLuxottica's established business model. This analyst report, published on Wednesday, highlights the risk of cannibalisation for the company's vast retail footprint and the potential for margin dilution, concerns that follow a recent price target downgrade from BNP Paribas Exane. The core worry is the company's ability to adapt to this new technology, which could redefine the perceived value and utility of traditional eyewear.
This market apprehension has translated into EssilorLuxottica's stock falling by exactly 4.2% today, 23 April 2026, and it is currently trading at €193.00, down from its previous close of €201.50.
Consider a traditional Swiss watchmaker, renowned for its craftsmanship and precision. If a new "smartwatch" technology emerges, offering functionalities far beyond telling the time and a radically different user experience, the perceived value and demand for classic watches could be significantly challenged. The company's dilemma is not just competing with a new product, but adapting to a paradigm shift in what consumers expect from their accessories.
EssilorLuxottica
EssilorLuxottica S.A. (EL) is a global leader in ophthalmic products, specialising in the design, manufacture, and distribution of lenses, frames, and sunglasses. Its operations span North America, Europe, Latin America, Asia, Oceania, and Africa, organised across five key segments: Wholesale, Retail, Lenses and Optical Instruments, Equipment, and Sunglasses and Readers. The company's diverse portfolio includes well-known lens brands such as Varilux, Crizal, and Transitions, alongside optical instruments for professionals. Its Equipment division supplies digital surfacing and lens coating machines. The Sunglasses and Readers segment offers a wide array of non-prescription eyewear under various brands, including Foster Grant and Bolon. With a network of 490 prescription laboratories and edging-mounting facilities, EssilorLuxottica was founded in 1849 and is headquartered in Paris, France.