EssilorLuxottica's North America and Supreme Acquisition: A Recipe for Success

EssilorLuxottica, the global leader in eyewear, has been making waves in the market with its strong performance in North America and strategic acquisition of Supreme. The company's fourth-quarter results, released on February 12, 2025, showed a 9.2% increase in revenue at constant currency, reaching 6.78 billion euros. This impressive growth was driven by the company's North American business, which accounted for over 40% of its sales and recorded its best quarter of the year.

One of the key factors contributing to EssilorLuxottica's success in North America was the consolidation of Supreme, the popular streetwear brand acquired in 2024. The integration of Supreme into EssilorLuxottica's portfolio has not only expanded the company's product offerings but also attracted a new, younger customer base. This strategic move has contributed to sales growth in North America, with the region's revenue rising by 7.8% at constant currency to 3.15 billion euros in the fourth quarter.

Another driver of EssilorLuxottica's strong performance in North America was the success of Ray-Ban Meta wearables. These smart glasses, which incorporate AI features and cameras, have been a hit with consumers, reaching 2 million units sold since their launch in 2023. The company's expansion into hearing care with the Nuance Audio device, which recently received FDA and EU clearance, has also opened new opportunities in the North American market.

EssilorLuxottica's adjusted operating margin for 2024 was 17.0% at constant exchange rates, an increase of 50 basis points compared to 2023. The company's strong free cash flow of 2.4 billion euros in 2024 was also a testament to its successful integration of Supreme and other strategic initiatives.

In conclusion, EssilorLuxottica's strategic acquisition of Supreme, combined with its strong performance in North America and expansion into new product categories, has contributed to the company's impressive financial results. As EssilorLuxottica continues to innovate and adapt to the changing market landscape, investors can expect the company to maintain its momentum and deliver long-term growth.