Canada's Kits Eyecare Q2 revenue up 31% to $49.6 mln

Overview

• Kits Eyecare Q2 revenue rises 31% yr/yr to record $49.6 mln

• Adjusted EBITDA improves 96%, marking 11th consecutive positive quarter

• Net loss due to non-operating exchange losses, gross profit rises 45%

Outlook

• Kits Eyecare sees Q3 2025 revenue between C$52.0 mln and C$54.0 mln

• Company expects Q3 2025 Adjusted EBITDA margin of 5.0% to 7.0%

Result Drivers

• REVENUE GROWTH - Revenue increased by 31% to C$49.6 mln, driven by strong new customer growth and a 44% increase in glasses revenue, per CEO Roger Hardy

• GROSS MARGIN IMPROVEMENT - Gross margin rose to 36.3% from 32.8% due to refined pricing strategies and a higher mix of value products

• ADJUSTED EBITDA GROWTH - Adjusted EBITDA improved by C$1.3 mln to C$2.6 mln, marking the 11th consecutive qtr of positive adjusted EBITDA, according to CEO Roger Hardy

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

• Wall Street's median 12-month price target for Kits Eyecare Ltd is C$20.00, about 16.4% above its August 1 closing price of C$16.72

• The stock recently traded at 75 times the next 12-month earnings vs. a P/E of 51 three months ago

Press Release: ID:nCNWYFWr1a