KITS Observes Optical Category Moving Online as
KITS Eyeglasses Revenue Grows +36% YOY in Q1 2024, While Marketing
Costs as a Percentage of Revenue Declined in the Quarter
Avoiding the Costly Buildout of Brick-and-Mortar
Stores Often Saves Customers Hundreds of Dollars a Pair
VANCOUVER,
BC, May 16, 2024 /CNW/ - Kits
Eyecare Ltd. (TSX: KITS) ("KITS" or the "Company"), the leading
vertically integrated eyecare provider, is providing supplementary
data on the growth of its online eyeglasses business and the KITS
online vision tool platform for the first quarter ended
March 31, 2024.
During the first quarter of 2024, KITS increased
its Virtual Try-On (VTO) sessions by 96% to over one million
sessions compared to approximately 510,000 in the same prior-year
period. These sessions accounted for over 1.35 million frames tried
on in the first quarter of 2024 compared to approximately 646,000
frames in the same prior-year period. This contributed to
category-leading eyeglasses revenue growth of +36% in Q1, compared
to the same prior-year period. Growth occurred with a decline in
marketing costs as a percent of sales.
The online growth in optical appears to mirror
the broader retail market. BCG recently estimated that e-commerce
is poised to capture 41% of global retail sales by 2027—up from
just 18% in 2017 (1), a 9% compounded annual growth
rate.
"The optical consumer is rapidly moving online,"
said Roger Hardy, Co-Founder and CEO
of KITS. "Just as many other categories from beauty to grocery to
electronics have before it. Online vision tools like our VTO
platform make it easier for consumers to explore new styles and new
materials at their convenience. In particular, we see the
millennial consumer, 25-45 years old, shifting their optical
purchases from storefront to online. As they do, KITS will ensure
that our category-leading value, +2,100 style selection, and
delivery in as little as 1-2 days is there to meet this growing
need. Avoiding the need for a costly physical retail footprint also
allows us to pass cost savings onto our customers, often saving
them hundreds of dollars a pair. It's clear to us that companies
that invest in the online experience will continue to grow at the
expense of the brick-and-mortar incumbents."
"We've heard others say that growth in our
category requires an increase in marketing spend, but that has not
been our experience at KITS," said Joseph
Thompson, Co-Founder and COO of KITS. "While experiencing
growth at over five times the rate of the industry, our marketing
costs have declined as a percentage of revenue. We've found that
when customers have a great experience and see how easy it is to
shop for optical online, they tell their friends and family about
it. They also return faster, with KITS retention levels on 100% of
revenue repeating within 24 months, roughly twice as fast as
brick-and-mortar competitors."
At the end of the first quarter of 2024, KITS
offered over 2,100 unique styles of eyeglasses with over 305,000
frames in stock. Eyeglasses are designed and made at the Company's
onshore, automated optical lab in Vancouver and shipped out to customers
throughout North America, often in
one day.
(1)
https://www.bcg.com/press/31october2023-ecommerce-global-retail-sales
About KITS
KITS makes eyecare easy. KITS is a leading
vertically integrated digital eyecare brand providing eyewear for
eyes everywhere. We offer customers access to a vast selection of
contact lenses and eyeglasses, including our own exclusive KITS
designed products, as well as a robust suite of online vision
tools. Our efficient digital platform, backed by our
industry-leading manufacturing and designs, removes intermediaries,
and enables us to offer great prices and deliver made to order
personalized products with incredible care and accuracy. We are
creating disruption in the industry by constantly pursuing
cutting-edge technologies to enable the best customer experience,
including online eyewear fitting tools, and virtual try-on for
glasses. We strive to delight our customers with our competitive
prices, a convenient digital shopping experience, fast and reliable
delivery options, and an unrelenting focus on earning our
customers' lifelong trust. For more information on KITS, visit:
www.kits.com.
Investor Relations Contacts:
Cody Slach and Cody Cree
Gateway Group, Inc.
1-949-574-3860
KITS@gateway-grp.com
SOURCE KITS