EssilorLuxottica Shares Drop 2.5% Threatening the €165 Support Level
The Franco-Italian optical giant significantly declined by midday, amid a sharply downward trending CAC 40. The stock is among the largest declines in the Paris index, alongside luxury and healthcare stocks. This session extends the negative streak that began last week, following a failed rebound in early June.
The Stock Drops 2.39% and Falls Below its 20 and 50-Day Moving Averages
EssilorLuxottica shares fell 2.39% to €169.40, in an SBF 120 that is down by 0.73% and a CAC 40 that retreated by 0.72%. The stock is among the biggest losers in the CAC 40, following Hermès (-4.85%) and Sanofi (-2.62%), indicating a marked decline in defensive and luxury stocks at mid-session. The weekly loss now stands at -7.28% and the quarterly decline has reached 13%, reflecting an underlying trend that struggles to recover despite several rebound attempts since the end of May. Technically, the price has significantly dropped below the MM20 (€176.12, a -3.82% gap) and the MM50 (€181.35, a -6.59% gap), both levels recently regained during the mid-June rebound and since lost.
The €165.45 support level is now in sight, just over 2% away from the current price. The RSI at 44 remains in the neutral zone, with no seller exhaustion signal at this stage. The MM200 at €244.81 highlights the extent of the underlying deterioration, with the price trading nearly 31% below this long-term reference.
Geopolitical Tensions and Central Banks' Tightening Weigh on Defensive Stocks
The decline is part of a tense market environment, marked by the confirmation of a more restrictive turn by major central banks and persistent tensions around the Strait of Hormuz, where Washington has denied Tehran's claimed closure. The ECB has raised its rates for the first time since 2023 and the Bank of Japan has set its benchmark rate at a high since 1995, in a context of inflationary pressures linked to energy. The 10-year Treasury yield is hovering around 4.50%, a long-term rate environment that traditionally weighs on the valuations of growth and premium consumption stocks.
On the corporate news front, the partnership formed on June 17 with Applied Materials for smart glasses and augmented reality has not been sufficient to stop the stock's relapse, which also saw its trading penalized by a broker's target price revision. On June 1, the group finalized the payment of the 2025 dividend in shares, issuing 957,954 new shares. The next operational milestone for the market will be the publication of the semi-annual revenue, expected this summer, in a context where the dynamics of the Ray-Ban connected glasses segment remains a point of observation for analysts.
