Kits Eyecare Ltd. says it expects first-quarter revenue to reach as much as $60 million, reflecting organic growth of up to 29 per cent and continued expansion in its glasses segment.
The Vancouver-based eyewear company said recently it anticipates revenue in the range of $58 million to $60 million for the three months ending March 31. It also forecast adjusted EBITDA margins between four and six per cent and said glasses revenue is expected to exceed $10 million, representing year-over-year growth of more than 50 per cent.
The guidance signals continued growth for the digitally focused eyewear retailer as it invests in marketing and operations to expand market share, it noted.
Growth outlook
In outlining its first-quarter expectations, KITS said revenue of $58 million to $60 million would reflect organic growth of 25 to 29 per cent compared with the same period a year earlier.
KITS said it continues to see momentum in its glasses category and cited increasing repeat customer behaviour, expanding premium lens adoption, strong customer acquisition efficiency and operating leverage within its vertically integrated model as factors supporting performance.
Management said it believes these trends reflect the durability and scalability of its platform.
Marketing investment
The company said it is continuing marketing investment during the quarter to expand brand awareness and accelerate market share gains.
It described the spending as a deliberate decision supported by its view of customer lifetime value, structural cost advantages from vertical integration and its long-term operating model. KITS said it remains focused on disciplined capital allocation and value creation.
Roger Hardy, co-founder and chief executive of KITS, said the company’s recent performance supports its strategy.
“Our performance continues to validate the strength of our vertically integrated model and our ability to capture share in a large, profitable category. We are executing with discipline, investing thoughtfully, and building a platform designed to compound value over time,” he said.
“As we continue to demonstrate sustained growth and earnings durability, we believe the quality of business is becoming increasingly evident.”
Balance sheet and capital position
KITS said it maintains what it described as a strong balance sheet, supported by liquidity and a recently expanded $15-million credit facility. The facility complements what the company called an already robust balance sheet and a conservative capital structure.
The company said this financial flexibility enables it to invest while preserving strategic options.
Over the past three years, KITS said it has delivered double-digit revenue growth, expanding earnings power and strong repeat customer metrics. Management said it believes that performance demonstrates the company has become a scaled and profitable platform within its industry.
KITS operates a vertically integrated digital eyewear platform offering prescription glasses and contact lenses.
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