Core Viewpoint - EssilorLuxottica and Dolce&Gabbana have extended their partnership through 2050 for the development, production, and global distribution of prescription frames and sunglasses under the Dolce&Gabbana brand [2]. Group 1: Partnership Details - The new agreement reflects a long-term collaboration model, emphasizing deep integration of values, strategic vision, and product culture [3]. - The partnership, which began in 2004, has successfully combined strong business results with creative vision [4]. - The extension of the partnership indicates mutual confidence in future opportunities for both companies [4]. Group 2: Company Strengths - EssilorLuxottica is recognized for its expertise in eyewear manufacturing, high-quality retail and distribution network, and focus on technological innovation [4]. - Dolce&Gabbana expresses pride in further strengthening the partnership, highlighting the brand's iconic status in the fashion industry [4].

Core Viewpoint - EssilorLuxottica and Dolce&Gabbana have extended their partnership through 2050, focusing on the development, production, and global distribution of eyewear under the Dolce&Gabbana brand [2]. Group 1: Partnership Details - The new agreement reflects a long-term collaboration model, emphasizing deep integration of values, strategic vision, and product culture [3]. - The partnership, which began in 2004, has successfully combined strong business results with creative vision [4]. - The extension of the partnership indicates mutual confidence in future opportunities for both companies [4]. Group 2: Company Strengths - EssilorLuxottica is recognized for its expertise in eyewear manufacturing, high-quality retail and distribution network, and focus on technological innovation [4]. - Dolce&Gabbana expresses pride in strengthening the partnership, highlighting the brand's iconic status in the fashion industry [4].

Core Points - As of February 28, 2026, EssilorLuxottica has 463,289,594 shares outstanding and 461,843,431 real voting rights, excluding treasury shares [2][3] - The theoretical number of voting rights, including treasury shares, remains the same at 463,289,594 [3] - Voting rights for any shareholder are capped at 31%, as per the company's by-laws [3]

Core Viewpoint - EssilorLuxottica has filed its 2025 Universal Registration Document with the French market regulator, which includes essential financial and governance information [2]. Group 1: Document Filing - The 2025 Universal Registration Document was filed with the Autorité des Marchés Financiers (AMF) on March 6, 2026, under reference D.26-0067 [2]. - The document is available in French and prepared in ESEF format, complying with applicable regulations [2]. Group 2: Content of the Document - The Universal Registration Document includes the Annual Financial Report, which encompasses the parent company financial statements and the group consolidated financial statements [5]. - It contains the Management Report and the Vigilance Plan, adhering to specific articles of the French Commercial Code [5]. - The document also includes a statement from the responsible person, Statutory Auditors' Reports, and information regarding Statutory Auditors' fees [5].

Financial Data and Key Metrics Changes - In fiscal 2025, net revenue grew 9% to $1.99 billion, with adjusted comp store sales increasing by 6% [7] - Adjusted operating income rose 56% to $102.5 million, with an AOI margin expansion of 160 basis points to 5.2% [7] - For the fourth quarter, net revenue increased 15.1% to $503 million, with adjusted operating income at $17.6 million and an AOI margin of 3.5% [8][40] Business Line Data and Key Metrics Changes - The number of exams performed by the doctor network increased, contributing to healthy profit expansion [6] - Managed care comp sales grew in low double digits, with 42% of revenues attributable to managed care by the end of the year [10] - Average ticket growth was 6% for the year, driven by a shift towards more profitable customer cohorts [10][12] Market Data and Key Metrics Changes - Traffic declined 0.5% overall for the year, reflecting declines with self-pay customers, but strong traffic gains were seen with managed care and progressive customers [10] - The company experienced traffic growth in managed care, progressive, and outside RX customers combined during the fourth quarter [8][38] Company Strategy and Development Direction - The company is focused on four growth vectors: expanding with underdeveloped customers, evolving product offerings, enhancing customer experience, and new store growth [9] - A significant pivot was made to attract more profitable customer cohorts, particularly those using insurance [11] - The merchandising strategy is evolving to better meet the needs of higher-income demographics, with a goal to increase the mix of branded frames [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to continue expanding market share and improving profitability despite macroeconomic challenges [5][33] - The company anticipates continued momentum from transformation initiatives, with a fiscal 2026 outlook projecting net revenue between $2.03 billion and $2.09 billion [45] - Management noted that the cash pay consumer is expected to comp positively, with optimism regarding tax refunds and smart eyewear contributing to growth [56] Other Important Information - The company ended fiscal 2025 with a cash balance of $38.7 million and total liquidity of $332 million [42] - A new share repurchase authorization was approved for up to $50 million until December 28, 2030 [44] - The company plans to open approximately 30 to 35 new stores in fiscal 2026, with a net growth of about 20 to 25 stores after closures [46][47] Q&A Session Summary Question: Concerns about the trade-off between growth from insurance customers versus traditional customers - Management noted that while there was some slowing in cash pay customers, managed care consumers remain strong, and there is optimism for positive comps in 2025 [51][54] Question: How to assess the impact of tax refunds and smart glasses on guidance - Management indicated that cash in consumers' pockets is beneficial, and they expect smart eyewear to contribute positively to sales [57][59] Question: Insights on traffic dynamics between profitable target customers and traditional customers - Management acknowledged the multi-year strategy to shift customer cohorts, focusing on acquiring more profitable customers while managing the transition from cash pay consumers [66] Question: Impressive SG&A leverage and future cost management - Management highlighted that SG&A leverage was achieved through a mix of higher sales and cost-cutting measures, with ongoing efforts to optimize expenses [68][70] Question: Projections for a softer end market and its impact on business - Management expressed confidence in outperforming the market despite macro challenges, citing growth in eye exams and a strong brand strategy [75]

Core Insights - Warby Parker Inc. reported Q4 results on February 26, indicating a slight slowdown in growth due to macroeconomic pressures, but the company remains on track for a relatively stable long-term growth outlook [1] Financial Performance - The company's growth has been impacted by macroeconomic conditions, yet it continues to show resilience in its overall performance [1] Investment Philosophy - The investment philosophy focuses on identifying mispriced securities by understanding the financial drivers of a company, often revealed through a DCF model valuation, which allows for a comprehensive assessment of a stock's risk-to-reward profile [1]

Core Viewpoint - FedEx Corp., United Parcel Service (UPS), and EssilorLuxottica S.A. are facing proposed class action lawsuits aimed at recovering payments for import duties and fees linked to the Trump administration's emergency tariffs, which were recently invalidated by the U.S. Supreme Court [1] Group 1: Lawsuits Filed - Morgan and Morgan has filed a lawsuit against FedEx Logistics in U.S. District Court for Southern Florida, seeking a full refund of duties paid by consumers affected by the tariffs [2] - A proposed class action lawsuit has been filed against EssilorLuxottica S.A. by Nathan Ward, claiming that the company should return reimbursements received from the U.S. government to customers charged for tariff surcharges [3] - Hali Anastopoulo has filed multiple lawsuits against FedEx and UPS in federal district courts across South Carolina, Georgia, and Tennessee, seeking repayment of duties and related costs for parcel imports [4] Group 2: Impact of Tariffs - The lawsuits are connected to the removal of a duty exemption for low-value goods, which has resulted in higher tariffs imposed on imports, affecting consumer prices significantly [5] - The tariff surcharges reportedly increased the price of purchases by approximately 6% compared to earlier prices in the spring of 2025 [3]

Core Viewpoint - Retail customers are filing proposed class-action lawsuits against companies like FedEx and EssilorLuxottica to ensure they receive a share of refunds related to tariffs deemed illegal by the U.S. Supreme Court [1][2][3]. Group 1: Legal Actions and Companies Involved - At least two lawsuits have been filed against FedEx and EssilorLuxottica, with the aim of securing consumer refunds from any tariff reimbursements these companies may receive [2]. - More than 1,000 companies, including major corporations like Revlon and Costco, have also filed lawsuits in the U.S. Court of International Trade to protect their rights to reimbursement [2][3]. Group 2: Tariff Background and Refund Process - The Supreme Court invalidated tariffs worth an estimated $130 billion to $175 billion that were implemented under the International Emergency Economic Powers Act (IEEPA) [3]. - A refund process is expected to be established through the U.S. Court of International Trade or U.S. Customs and Border Protection as various lawsuits and claims progress [3]. Group 3: Company Responses and Consumer Claims - FedEx has stated it will return any tariff refunds to shippers and customers, but a complaint against the company argues that this pledge is not legally enforceable and depends on future government guidance [4]. - EssilorLuxottica is accused of continuing to collect tariff surcharges from consumers without issuing refunds, despite seeking a refund for the duties collected [6]. Group 4: Expert Insights - Legal experts anticipate an increase in consumer lawsuits against companies that charged itemized tariff fees, which may pressure businesses to share any tax refunds they secure [7]. - The situation reflects a broader narrative regarding the IEEPA, where consumers are questioning why they should not receive refunds for illegal duties [8].

Financial Data and Key Metrics Changes - In fiscal 2025, the company achieved a revenue growth of 13%, totaling $871.9 million, with retail revenue increasing by 17.3% and e-commerce revenue growing by 3.1% year-over-year [37][10] - The full-year adjusted EBITDA was $95 million, reflecting a 30% year-over-year increase, and the company reported its first full year of positive net income, generating $44 million in free cash flow [10][39] - The fourth quarter revenue was $212 million, up 11.2% year-over-year, with adjusted EBITDA margin at 7.2% [33][10] Business Line Data and Key Metrics Changes - The company opened 47 new stores in 2025, the highest number in a single year, contributing to high single-digit customer growth and mid-single-digit average revenue per customer growth [9][5] - Prescription glasses units declined by 6% industry-wide, but the company managed to maintain prices on most offerings, including its $95 prescription glasses [9][10] - Eye exams grew by 37% in 2025, accounting for approximately 6% of the business, with plans to scale this further in 2026 [18][19] Market Data and Key Metrics Changes - The company holds approximately 1.3% market share of the $70 billion U.S. eyewear market, with expectations for growth driven by the introduction of AI glasses [12][6] - The overall eyewear market is projected to decline low single digits in 2026, impacting revenue growth expectations [41][14] - The company experienced softness in retail traffic and contact lens growth, particularly among the 25 to 34-year-old demographic, while older customers remained more resilient [11][7] Company Strategy and Development Direction - The company plans to introduce AI glasses in partnership with Google and Samsung, aiming to capture a significant new total addressable market (TAM) [6][8] - Strategic priorities for 2026 include expanding the omni-channel model, increasing insurance penetration, and enhancing customer experience [16][25] - The company aims to open 50 new stores in 2026, focusing on existing markets to drive convenience and brand awareness [17][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term durability of the eyewear category despite recent volatility and softness in demand [7][8] - The company is adopting a disciplined approach to guidance for 2026, projecting revenue growth of 10%-12% without including potential revenue from AI glasses [42][14] - Management acknowledged the impact of historic winter weather on store traffic and sales, particularly in high-volume locations [15][45] Other Important Information - The company ended 2025 with a strong cash position of $286 million, up $32 million from the prior year, and has a $120 million credit facility available [39][40] - The company is committed to maintaining marketing spend in the low teens as a percentage of revenue while optimizing for higher return channels [30][14] Q&A Session Summary Question: Can you elaborate on the softness that you're seeing with your younger customer? - Management indicated that the softness reflects broader industry pressures, with younger consumers feeling financial strain impacting their purchasing behavior. Actions include increasing media spend on platforms popular with younger demographics [53][54] Question: How are you thinking about growth rates going forward? - Management remains committed to low double-digit growth despite weather impacts in Q1, emphasizing healthy growth compared to industry averages [63][64] Question: Can you speak to the unit capacity that you're preparing for in launch year? - The company has built a vertically integrated brand to respond to customer demands and is investing in optical labs to ensure capacity for the upcoming AI glasses launch [56][57] Question: How are you thinking about tariffs and pricing for 2026? - Management is monitoring tariff impacts closely and has not incorporated any benefits from recent rulings into their guidance, remaining flexible to navigate potential changes [66][68] Question: Are you making any assumptions regarding how the launch may impact traffic and conversion for the core business? - Management has not factored in a halo effect from the AI glasses launch in their guidance [71]

Financial Data and Key Metrics Changes - In fiscal 2025, the company achieved a revenue growth of 13%, totaling $871.9 million, with retail revenue increasing by 17.3% and e-commerce revenue by 3.1% year-over-year [35][36] - The full-year adjusted EBITDA was $95 million, reflecting a 30% year-over-year increase, and the company reported its first full year of positive net income, generating $44 million in free cash flow [10][37] - The fourth quarter revenue was $212 million, up 11.2% year-over-year, with adjusted EBITDA of $15.2 million, representing a margin of 7.2% [32][34] Business Line Data and Key Metrics Changes - The company opened 47 new stores in 2025, the highest number in a single year, contributing to high single-digit customer growth and mid-single-digit average revenue per customer growth [9][10] - Prescription glasses units declined by 6% industry-wide, but the company managed to maintain prices on most offerings, including its $95 prescription glasses [9][10] - Eye exams grew by 37% in 2025, accounting for approximately 6% of the business, with plans to scale this further in 2026 [18][19] Market Data and Key Metrics Changes - The company holds approximately 1.3% market share of the $70 billion U.S. eyewear market, with expectations for growth driven by the introduction of AI glasses [12][14] - The overall eyewear market is projected to decline in 2026, with the company planning for low double-digit revenue growth despite these headwinds [14][40] - The company experienced a slowdown in growth trends in December, particularly among the 25 to 34-year-old consumer cohort, while older customers remained more resilient [11][12] Company Strategy and Development Direction - The company is entering its "third act," focusing on AI integration, including the launch of AI glasses in partnership with Google and Samsung, which is expected to expand its addressable market [6][8] - Strategic priorities for 2026 include expanding the retail footprint, increasing insurance penetration, and enhancing the customer experience [16][25] - The company aims to leverage its tech-enabled brand advantages to capture market share during the transition from traditional to intelligent eyewear [8][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term durability of the eyewear category despite recent volatility and softness in demand [7][12] - The company is planning conservatively for the near term while remaining optimistic about the potential of AI glasses to drive future growth [11][14] - Management highlighted the importance of maintaining a strong balance sheet to support strategic initiatives and the launch of new products [38][39] Other Important Information - The company has a strong cash position of $286 million, up $32 million from the prior year, and a $120 million credit facility that remains undrawn [37][38] - The company is committed to maintaining marketing spend in the low teens as a percentage of revenue while optimizing for higher return channels [29][40] Q&A Session Summary Question: Can you elaborate on the softness that you're seeing with your younger customer? - Management indicated that the softness reflects broader industry pressures, with younger consumers feeling financial strain impacting their purchasing behavior. Actions include increasing media spend on platforms popular with younger demographics [50][51] Question: How are you thinking about growth rates going forward? - Management remains committed to low double-digit growth despite weather impacts in Q1, emphasizing healthy growth compared to industry averages and confidence in market share gains [61][62] Question: Can you speak to the unit capacity that you're preparing for in launch year? - The company has not factored in a halo effect from the AI glasses launch in its guidance but is confident in its vertically integrated supply chain to meet demand [69][70]