EssilorLuxottica Shares Drop 3.7% Despite Double-Digit Growth in Third Quarter
In mid-morning trading this Thursday, shares of the Franco-Italian optical giant fell 3.7% to €194.05, following the announcement of its quarterly revenue. The decline is part of a broader downward trend, with a drop of more than 27% over three months. Meanwhile, the CAC 40 index rose by 0.46% to 8,194 points during the session.
Strong Revenue Growth Fails to Boost EssilorLuxottica's Share Price
EssilorLuxottica revealed yesterday a revenue of €7.127 billion for the first quarter of 2026, marking an increase of 10.8% at constant exchange rates. This is the third consecutive quarter where the group has posted growth above 10%, driven by its activities in optics, eyewear, and wearables. Despite these figures, the market penalized the stock this morning. The 3.7% drop extends a decline that began several weeks ago: over the year, the stock has lost more than 23% of its value. Among comparable stocks listed in Paris, LVMH is down 0.67% in the session, while L'Oréal has surged by 8.35%. On Wall Street, several luxury and premium sector players also closed in the red in the last session, including Tapestry (-2.88%) and Ralph Lauren (-2.97%). The next key event for EssilorLuxottica will be its general meeting scheduled for April 28.
Technical Analysis Shows Significant Downward Trend
Technically, the price of €194.05 is significantly below the 50-day moving average of €214.05, and even more so below the 200-day moving average (€261.18). This substantial gap indicates a fundamental downward trend that has not reversed despite the group's commercial dynamism. The stock is trading in the lower part of the Bollinger Bands, at 29% of the range between the lower bound (€186.50) and the upper bound (€212.37), reflecting a zone of relative weakness without indicating a clear oversold situation. The nearest support threshold is at €190.20, about 2% below the current price. A downward breach of this level could intensify selling pressure. The RSI, at 46, remains in a neutral zone, indicating neither significant bullish nor bearish excess. The one-month volatility stands at 8.40, in a context where the stock's beta remains very low (0.13), indicating a historical decoupling from overall market fluctuations.
