On Wednesday, July 3, quotes on shares of Canada’s KITS Eyecare, a retailer of glasses, contact lenses, and accessories, closed at their highest level since March 2021. This came after the company released preliminary second-quarter results, the highlight of which was 25% year-over-year revenue growth.
Details
On Wednesday, KITS Eyecare stock rose 3% to CAD8.85 per share on the Toronto Stock Exchange. This marked the highest closing price since March 2021, when it reached CAD9 per share. The company’s market capitalization is now CAD278 million ($204 million).
Earlier in the day, the company reported preliminary earnings for the second quarter of 2024. In particular, its revenue rose 25% year-over-year to CAD37.5 million. The revenue growth was over five times the industry average, company CEO and cofounder Roger Hardy was quoted as saying in the press release.
About KITS Eyecare
KITS is a Canadian manufacturer and retailer of glasses and contact lenses. Its product range includes over 2,100 styles of frames, including custom-made ones, all of which can be tried on virtually. Most glasses are made on the day of order and delivered within 1-2 days across Canada. The company’s optical laboratory can produce more than 4,000 pairs of glasses a day, cofounder Joseph Thompson stated at the recent LD Micro conference in New York.
In June, KITS announced an agreement with TELUS Health, a provider of medical technology services. The partnership allows KITS to offer direct billing for glasses and lenses to 38 insurance companies, which, combined, cover 70% of Canadians. With that, KITS claims to have the widest direct billing coverage in Canada in the optical segment.
What analysts say
According to FactSet, six analysts cover KITS. They recommend buying the stock, with an average target price of CAD10.05 per share.
