Kits Eyecare Ltd
TSX:KITS
Kits Eyecare Ltd
Kits Eyecare Ltd. engages in the online retailing of eye care products. The company is headquartered in Vancouver, British Columbia and currently employs 95 full-time employees. The company went IPO on 2021-01-19. The firm offers customers access to a selection of contact lenses and eyeglasses, including its own exclusive KITS designed products, as well as an advanced suite of online vision tools. The firm also provides customer convenience by providing access to online virtual fittings, pupillary distance measurements, and online vision tests. The firm offers Autoship subscription delivery program for its customers. Its KITS branded collections include Little Italy, South Beach and KITS Kids.
Kits Eyecare Ltd. engages in the online retailing of eye care products. The company is headquartered in Vancouver, British Columbia and currently employs 95 full-time employees. The company went IPO on 2021-01-19. The firm offers customers access to a selection of contact lenses and eyeglasses, including its own exclusive KITS designed products, as well as an advanced suite of online vision tools. The firm also provides customer convenience by providing access to online virtual fittings, pupillary distance measurements, and online vision tests. The firm offers Autoship subscription delivery program for its customers. Its KITS branded collections include Little Italy, South Beach and KITS Kids.
Record Revenue: Kits Eyecare delivered record Q3 revenue of $52.4 million, up 25% year-over-year and 6% sequentially, hitting the top end of its guidance.
Profitability: Adjusted EBITDA reached $2.9 million (5.5% of revenue), up 79% year-over-year, marking the 12th consecutive quarter of positive adjusted EBITDA.
Customer Growth: The company added 99,000 new customers in Q3 and surpassed 1 million active customers, with year-to-date new customer growth up 37%.
Gross Margin Expansion: Gross margin improved to 34.6%, up 170 basis points from last year, driven by product mix and operational efficiencies.
Canadian Strength: Canadian business saw revenue growth of over 38% year-over-year, outpacing other regions as US marketing was temporarily reduced.
Contact Lens Surge: Kits-branded contact lenses grew 380% year-over-year with over 50% gross margins, becoming a key high-margin segment.
Conservative Outlook: For Q4, revenue is guided between $52 million and $54 million with adjusted EBITDA margins of 4% to 6%, reflecting both confidence and caution amid dynamic market conditions.
Innovation Focus: Technology investments, including the beta launch of OpticianAI, are enhancing the customer experience and driving conversion.
