By Joe Stonor
Shares in Ray-Ban owner EssilorLuxottica fell Tuesday after Warby Parker said it planned to launch the artificial-intelligence glasses it is developing with Google, intensifying competition in the smartglasses field.
Eyewear company Warby Parker said Monday that AI-powered glasses developed alongside Alphabet's Google would launch in 2026, meaning a new player in the market alongside smartglasses produced by Ray-Ban in partnership with Meta Platforms.
EssilorLuxottica shares were down 13.50 euros, or 4.45%, at 289.70 euros in afternoon European trading. The stock has risen 23% year to date.
Warby Parker has been working with Google since at least May to develop AI-powered glasses that will give users information about their surroundings. The eyewear company will roll out a series of smartglasses over time, starting in 2026.
The promise of Google-powered smartglasses will threaten the dominance Ray-Ban Meta has enjoyed up to now, according to analysts at Bernstein.
"Recent announcements from the likes of Alibaba and now Google have marked a clear shift in the focus of competition, from branding and hardware to software and tech-powered ecosystems," the analysts said.
The risk of commoditization in smartglasses hardware is a downside for EssilorLuxottica as the company is dependent on Meta for its glasses' AI capabilities, the analysts added.
Meta launched its first generation of smartglasses alongside EssilorLuxottica in 2021 to muted interest. Subsequent versions of the glasses have achieved greater popularity, and Meta unveiled an updated version of the Ray-Ban Meta smartglasses in September.
Write to Joe Stonor at josephmichael.stonor@wsj.com
(END) Dow Jones Newswires
12-09-25 1009ET
