Vancouver-based Kits Eyecare Ltd., a vertically integrated digital eyewear company, reported a record-breaking first quarter for 2025, with revenue surging 34 per cent year-over-year to $46.6 million. The company also delivered net income of $1.6 million, a significant increase from the $64,000 profit it posted in the same period last year.
The strong Q1 results mark the 10th consecutive quarter of positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), and position the company as a notable Canadian retail success story amid broader market uncertainty.
Sustained Profitability and Market Outperformance
Kits’ Q1 net income, though below the company’s Q4 2024 profit of $2.7 million, reflects strong operational performance when excluding one-time gains. The company’s CEO Roger Hardy noted that last year’s Q4 results were positively impacted by foreign exchange gains. Stripped of those, the latest quarter represents improved underlying earnings.
Kits’ stock performance has outpaced broader markets, with shares up 36.5 per cent year-to-date, even as the TSX Composite Index has gained less than 1 per cent over the same period. Despite a slight pullback in stock price today, investor sentiment remains positive as the company continues to execute on its growth plan.
Sales Momentum Led by Progressive Eyewear and Contact Lenses
Driving much of Kits’ revenue surge were higher-margin products, particularly progressive eyeglasses and contact lenses. These categories grew at a compound rate of 50 per cent and are expected to remain major contributors to profitability, given their approximately 50 per cent gross margins.
The company delivered a record 104,000 pairs of eyeglasses in Q1, up from a previous high of 75,000, reflecting increased consumer demand and growing brand awareness. Repeat purchases also contributed to revenue strength, with 63 per cent of total sales in 2024 stemming from returning customers.
U.S. Market Fuels Revenue Expansion
Kits continues to build a substantial U.S. customer base, with 68.4 per cent of 2024 sales originating from the United States. Much of that demand is for contact lenses, which are manufactured domestically within the U.S., shielding the company from tariff exposure. This strategic advantage has helped Kits expand cross-border while preserving healthy profit margins.
As of December 2024, the company reported more than 913,000 active customers. Its focus on automation, customer retention, and supply chain integration has helped secure loyalty in a competitive marketplace.
Outlook for Q2 and Beyond
Kits is forecasting second-quarter revenue in the range of $48 million to $50 million, representing sequential growth of up to 7.3 per cent over Q1. The forecast underscores management’s confidence in continued strong demand across its core categories.
The company’s vertically integrated business model, with in-house optical manufacturing capabilities, remains central to its value proposition. Kits operates an advanced optical lab in Vancouver’s Broadway Tech Park—formerly used by Clearly—where it can produce single-vision glasses in as little as 15 minutes and ship many orders within 24 hours.
History and Leadership
Kits was co-founded in 2018 by Roger Hardy—well known in the industry for founding Coastal Contacts, which operated the Clearly brand in Canada before being acquired by Essilor for $430 million in 2014. Hardy launched Kits alongside Joseph Thompson, a former Amazon executive, and Sabrina Liak, a former managing director at Goldman Sachs.
Since its founding, Kits has positioned itself as a digital-first disruptor in the eyewear space. The company’s product catalogue includes over 7,500 styles of glasses, from its own branded frames to luxury labels like Ray-Ban and Gucci. Its platform features online eye exam tools, virtual try-ons, and a subscription model for contact lenses.
Retail and Community Presence
While Kits remains a predominantly online business, it operates a single physical location at the corner of Cornwall Avenue and Yew Street in Vancouver’s Kitsilano neighbourhood. This space blends a retail showroom with a café, creating a community hub where customers can browse eyewear while enjoying local coffee.
The location reflects Kits’ hybrid approach to retail—merging digital convenience with a localized, experiential touchpoint.
Competitive Landscape and Market Position
Kits continues to carve out market share in the North American eyewear industry, competing with major players such as Warby Parker and traditional optical retailers. Its ability to manufacture eyewear domestically and ship quickly has helped differentiate it in a category where convenience and affordability are key drivers of consumer choice.
The company’s roots in e-commerce, combined with leadership experience in scaling successful optical ventures, provide a strong foundation for continued expansion.
