In a note released during the day, Bernstein's analysts expressed concern that EssilorLuxottica is now being valued like a tech company, with its share price trading at over 30 times earnings. This comes as investors remain convinced that the smart glasses developed in partnership with Meta will create significant long-term shareholder value.

The brokerage acknowledges that these are high-cost products capable of boosting revenue, and that the group has secured a genuine head start by being one of the first to enter the segment.

However, this digital revolution also carries significant risks, adds the SG subsidiary, which fears that these smart glasses could eventually cannibalize the group's so-called traditional eyewear.

Early warning signs

Bernstein is already beginning to observe some warning signs: at the end of 2025, sales in physical stores slowed significantly compared to wholesale sales made to retail partners.

Another cause for concern, according to analysts, is that EssilorLuxottica could find itself at a disadvantage compared to tech giants in a segment where customers are not just looking for stylish frames, but primarily for high-performance software and apps.

The real danger for EssilorLuxottica, they add, is that the company's historical strengths—its brand, design capabilities, vertical integration, and global retail presence—risk being replicated.

From their perspective, tech companies can partner with luxury brands, use Chinese manufacturers for frames, collaborate on lens cutting, and sell their products directly online.

"If the group does not quickly find new ways to generate profit, its vast network of boutiques could become a burden," Bernstein warns.

"We are not headed toward a slow decline like that of the Swiss watch industry, but toward a head-on war against Big Tech that risks deflating the share price," the research firm cautioned.