Canada’s KITS Eyecare, a retailer of eyewear and contact lenses, has upgraded its revenue guidance for the third quarter of 2024 just a month after announcing the previous estimate. Analysts have taken note and raised their target prices for the stock.
Details
KITS Eyecare has announced that it sees upside to the previously guided range for third-quarter revenue. Less than a month ago, it guided for CAD39-41 million ($28.8-30.2 million).
The upgrade followed a record week of ordered sales of approximately CAD3.5 million at the end of August, with the company noting that “this performance, including records in sales Canada, has contributed significantly to the increased confidence in the company’s Q3 guidance.”
KITS did not provide an updated revenue figure, merely saying that year-over-year growth would exceed 32%. Note that revenue in the third quarter of 2023 came in at CAD31.2 million ($23 million).
Analyst recommendations
According to Investing.com, five analysts cover KITS. They recommend buying the stock, with an average target price of CAD13.70 per share, indicating upside of around 26% versus the closing price of CAD10.90 per share on Tuesday, September 3. Their average target price has risen 13% compared to just a month ago.
KITS stock is up almost 75% since the beginning of the year and about 113% over the last 12 months. The price has not fallen below CAD10.00 per share since mid-August, while previously it managed to rise above that level only on its debut trading day in early 2021.
About KITS Eyecare
KITS Eyecare positions itself as a digital eyecare platform where customers can have an online eye exam and purchase glasses and contact lenses. It was founded in 2018 by Canadian entrepreneur Roger Hardy and his partners, Joseph Thompson and Sabrina Liak.
The company sells eyewear online. It wants people to own multiple pairs of glasses, similar to how they have many scarves and headscarves. Most glasses at KITS cost $28 a pair – cheaper than most online competitors, notes the Canadian publication BCBusiness. The company’s revenue for the second quarter came in at CAD37.9 million (almost $28 million), up 26% year over year, while gross profit grew 25% to CAD12.4 million ($9.15 million).
The company offers 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 said at the spring LD Micro conference in New York.
