EssilorLuxottica shares fell 4.2% Thursday after organic revenue growth slowed to 11% in Q1 2026, down from 18% in late 2025. The decline reflects fading momentum in its smartglasses business, which drove last year’s surge. The Franco-Italian eyewear giant sold 7 million smartglasses in 2025, up from 2 million combined in 2023-2024, fueled by its Ray-Ban collaboration with Meta.

But sales now contribute only mid-single digits to growth, with CFO Stefano Grassi citing waning consumer enthusiasm. Supply constraints also emerged, as Meta paused European distribution of smart Ray-Bans amid U.S. demand spikes. Investors worry the partnership’s novelty may fade, leaving EssilorLuxottica exposed to broader market volatility.