Canada's Kits Eyecare prelim Q4 revenue growth tops estimates

Overview

• Canada eyecare provider's preliminary Q4 revenue rose 20%, beating analyst expectations

• Glasses revenue for Q4 grew 33% yr/yr

• Company's full-year 2025 revenue increased 27% yr/yr

Outlook

• Kits Eyecare did not provide specific future guidance

Result Drivers

• GLASSES REVENUE - Record Q4 glasses revenue increased 33% yr/yr to C$8.7 mln, driven by higher unit sales

• UNIT SALES GROWTH - Glasses units increased 43% yr/yr to 119,000 units, supporting revenue growth

• NEW CUSTOMERS - New customer additions increased 30% yr/yr to 393,000, boosting overall revenue

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$23.00, about 19.7% above its January 6 closing price of C$19.22

• The stock recently traded at 69 times the next 12-month earnings vs. a P/E of 60 three months ago

Press Release: ID:nCNWBfW88a

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