EssilorLuxottica shares fell sharply ahead of Wednesday’s earnings report, reflecting investor anxiety about profit margins overshadowing growth from its tech-infused eyewear. The Franco-Italian company’s 7% stock decline this month signals doubts about sustaining premium pricing amid rising costs for its Meta-powered Ray-Ban smart glasses.

The eyewear giant’s partnership with Meta Platforms represents its biggest push into wearable tech, with smart glasses accounting for nearly 10% of Q4 sales. However, analysts warn production costs for augmented reality features could erode the 70% gross margins typical for traditional Luxottica frames.

Wednesday’s results will test whether consumers will pay $300+ for camera-equipped sunglasses as economic uncertainty grows. With EssilorLuxottica shares underperforming the STOXX Europe 600 by 12% year-to-date, investors seek clarity on balancing tech investments with profitability.