Innovative Eyewear Inc. Reports First Quarter 2024 Financial Results
Units sold increased 150% & Revenue Increased 165% in Q1 2024 vs Q1 2023
MIAMI, May 14, 2024 /PRNewswire/ -- Innovative Eyewear Inc., (NASDAQ:LUCY, LUCYW))), a developer of smart eyewear under the Lucyd®, Nautica®, Eddie Bauer® and Reebok® brands, today announced its financial results for the first quarter of 2024.
Net revenue for the quarter ended March 31, 2024 was $383,471, an increase of 165% from the quarter ended March 31, 2023. This year-over-year increase was primarily attributable to significant volume growth in the e-commerce channel, driven by the Company's strategic advertising and marketing initiatives during the latter portion of 2023 and through the current quarter, combined with recent new product launches (including the Lyte XL and Nautica® Powered by Lucyd collections).
Future Outlook
The sales growth reported by the Company precedes the launch of three new product lines - Eddie Bauer® Powered by Lucyd, Reebok® Powered by Lucyd, and the Lucyd Armor smart safety glasses line - all of which we are bullish about as they are expected to present additional revenue generating opportunities for us in 2024. In addition, the Company plans to launch new features for the Lucyd app in 2024, including a paid "Pro" version of the app, which will provide another potential incremental revenue stream for the Company from glasses customers.
While the Company has started to realize some economies of scale in the cost of frames and in the area of shipping and logistics, the cost of prescription lenses has grown disproportionately and significantly more than the Company's revenue, which has had a significant negative impact on gross profit margin. Prescription smart eyewear offered direct-to-consumer has been a key unique selling point used to attract new customers, bringing an important marketing benefit since it is not offered by most of our competitors. We are working with our current prescription lens provider to explore opportunities to reduce costs and we are also actively in discussions with alternative prescription lens suppliers whom we believe may help further lower our lens fulfillment costs. Ultimately, we believe that the majority of our business will come from frame sales to distributors and eyewear retailers, who will outfit lenses themselves for the final customer. We anticipate that the launches of more co-branded products later this year will help us progress towards our long-term goal of shifting our sales mix over time more towards the wholesale channel, which carries higher margins for us as such sales to our third-party retail store partners do not include the cost of prescription lenses.
Finally, as we continue to refine our product mix with sales data, we anticipate further reducing our unit costs by focusing only on the highest volume, market-tested styles.
Harrison Gross, CEO of Innovative Eyewear Inc., commented,
"Our most recent quarter marked the third sequential quarter of year-over-year revenue growth. I am pleased by our continued growth and excited by the potential of further growth later this year with the upcoming launches of new product lines and upgraded app releases.
This is an exciting time for the Company. After several years of rigorous R&D and brand development, I believe we are very well-positioned to capitalize on blooming consumer interest in smart eyewear. Recently, we have seen powerful incumbents such as Apple and Meta bringing renewed interest to smart glasses, which helps us quite directly by raising consumer awareness for the category. We believe this has enhanced investor and consumer confidence in the category. As the value leader in prescription smart eyewear, we are a practical alternative to the Apple Vision Pro and Meta Glasses for consumers seeking a lightweight, AI-enabled and affordable option for all-day wear. The fact that our products are available in dozens of different styles, with thousands of frame and custom lens combinations, provides consumers with the necessary optionality that they expect when making an eyewear selection. We continue to expect that smart eyewear will be a key component of the generative AI revolution, due to their transparent interfaces and ergonomic form factors perfectly suited for voice-based interaction."
Forward Looking Statements
This press release contains certain forward-looking statements, including those relating to the Company's business operations, projections, market position, future product lines and developments. Forward-looking statements are based on the Company's current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe-harbor for forward-looking statements. These statements may be identified by the use of forward-looking expressions, including, but not limited to, "anticipate," "believe," "continue," "estimate," "expect," "future," "intend," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 10-K under the caption "Risk Factors."
Investor Relations Contacts:
Innovative Eyewear Inc.
Scott Powell
Skyline Corporate Communications Group, LLC
Office: +1 (646) 893-5835
Email: [email protected]
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SOURCE Innovative Eyewear, Inc.