EssilorLuxottica SA shares declined about 2% on Monday after Goldman Sachs reduced its full‑year 2026 organic revenue growth outlook to 8.5%, down from the prior 10.8%, citing a more uncertain consumer environment and tougher third‑ and fourth‑quarter comparables. The broker also expects a year‑over‑year adjusted EBIT margin contraction in the first half of 2026 to 16.9%, driven primarily by foreign‑exchange effects and dilution from the wearables segment; the estimates exclude any impact from tariff refunds. For the second quarter, Goldman projects revenue of €7.80 billion, which is 0.6% below the consensus forecast, and an adjusted EBIT of €2.57 billion for the first half, 6% ahead of consensus expectations. The analyst house lowered its 12‑month price target to €230 from €260 while maintaining a “buy” rating, reflecting a higher weighted average cost of capital of 8.8% (up from 8.3%), a reduced terminal growth rate of 3% (down from 3.5%), and a lower target price‑to‑earnings multiple of 28× (previously 35×). Goldman noted that the stock has derated from a post‑Q3‑2025 peak of roughly 40× next‑twelve‑month P/E to about 22× NTM, indicating that the current valuation is now dislocated from its growth outlook. The firm expects revenue growth to continue driving earnings growth as margins stabilise. It also lowered its organic revenue growth estimates by 200 to 300 basis points per year for 2026 through 2028, partially offset by margin upgrades; adjusted EBIT is projected to change by +4% in 2026, +2% in 2027 and –2% in 2028 relative to prior estimates. Goldman identified downside risks including a slowdown in new product launches or delayed rollouts, lower‑than‑expected operational leverage, retail network disruption and weaker‑than‑expected consumer confidence. However, the broker highlighted that EssilorLuxottica’s wearables portfolio—encompassing the recently announced Meta glasses, production of wearables in Italy, and a distribution partnership with Best Buy—could sustain momentum for that business beyond 2026.