ESSILORLUXOTTICA (ESLOY)

Saturday

3:08 PM

Thesis: The combination of rising raw material costs and increased competition from online retailers is creating pressure on margins and market share…

Revenue Outlook

Metric	FY2025	FY2026E	FY2027E
Revenue	$28.5B	$29.4B	$32.0B
Rev. Growth	+7.5%	+3.3%	+8.8%
EPS	$2.42	$3.58	$3.93
EPS Growth	-6.9%	+47.8%	+9.9%
P/E (fwd)	38.9×	26.3×	23.9×

★ Analysts see FY2027 revenue reaching $32.0B — +8.8% growth in a single year.

What Could Go Wrong

1Rising raw material costs have pressured margins, with a projected gross margin decline of 200 basis points in the upcoming quarter.
2Increased competition from online retailers has resulted in a 5% market share loss in North America, impacting overall sales growth.
3Technological disruption from online eyewear retailers
4Regulatory changes affecting manufacturing standards
5Increasing competition from low-cost eyewear brands
6Market share loss to online retailers
7Moderate financial risk due to exposure to foreign exchange fluctuations
8Potential liquidity issues if cash flow declines significantly

FY2025 Snapshot

Revenue: $28.5B
Rev. Growth: +7.5%
Gross Margin: 60.6%
Op. Margin: 11.6%
Net Margin: 7.8%
Net Income: $2.2B
NI Growth: -5.7%
EPS: $2.42
1Y Return: -37.4%

ESLOY Chart

My Notes

"Management noted, 'We are facing significant headwinds from both cost pressures and competitive dynamics in the market.'"
Moat: EssilorLuxottica's strong brand portfolio and extensive distribution network provide a durable competitive advantage.
Watch: The rise of direct-to-consumer online eyewear brands poses a significant threat to traditional retail models.
value - The company offers a stable cash flow and dividend yield, appealing to value investors.
Moderate.
Watch on earnings: Consumer sentiment (UMCSENT), Retail sales growth (RSXFS), Gross margin percentage.

One Sentence Summary:

The bear case: rising raw material costs have pressured margins, with a projected gross margin decline of 200 basis points in the upcoming quarter.

Auto-composed from Stock Alarm intelligence, financial statements, and analyst estimates. Not investment advice.

Writing up the research note…

First read for a new ticker takes about 20–30 seconds while we build the analysis from the latest fundamentals, estimates, and intelligence. It's saved after this, so future visits are instant.