Tekcapital portfolio company Innovative Eyewear has released encouraging Q2 results as the company builds out its distribution channels for ChatGPT smart eyewear.
The smart eyewear company’s Q2 revenues increased by a very respectable 82% compared to the same period last year, and gross profits swung from a loss to a profit.
During the period, Innovative Eyewear started to see the early impact of sales of Nautica and Eddie Bauer-branded smart eyewear before the launch of Reebok eyewear, which is set to hit the shops later in 2023.
Innovative Eyewear has previously said its future success will be driven by a distribution strategy focused on eyewear outlets and retailers. Given that a large proportion of sales in the first half still came from its own e-commerce channels, the implementation of this strategy has yet to be reflected in sales figures and infers a boost in revenue in the company quarters.
Investors will look forward to more news from a partnership with distributor Windsor Eyes that promises further commercial progress in the eyewear retail market.
Some investors may have hoped revenues would be higher during the period, but you can’t take anything away from the traction the company is steadily building.
“We have continued the trend of outperforming each quarter on a year-over-year basis, which we have done every quarter for the last 12 months,” said Harrison Gross, CEO of Innovative Eyewear.
“I am pleased by our continued growth and excited by the potential of further expansion later this year with the upcoming launches of new product lines and upgraded app releases.
“While our ecommerce direct-to-consumer sales remain the most material portion of our sales to date, we believe that the wholesale optical channel represents a significant growth opportunity. We anticipate that as smart eyewear becomes more normalized for prescription wear, national eye care providers will begin to onboard more smart eyewear. As an innovator and value and variety leader in the category, we believe we are well positioned to earn a portion of this rapidly growing market.”
Arguably, the blockbuster brand licensing partnership with Reebok, which will not launch until later this year, has the potential to significantly increase revenues further. Reebok is a top ten global sportswear brand with worldwide recognition and an army of loyal consumers.
In addition to Reebok-branded smart eyewear, Innovative Eyewear is about to launch its safety range, which is aimed at the industrial and construction industries.
Up until now, the Lucyd smart eyewear ranges appear to have been designed with the latest fashion trends front and centre of the design process. The launch of its safety lines demonstrates an alternative school of thinking that is opening up new markets for the company.
According to Grand View Research, the global safety eyewear market is worth around $4 billion per year. Lucyd’s safety range will target this market ripe for innovation, which is comprised of firms required by law to provide products such as the Lucyd Armor smart safety glasses to protect its workers.
There are no firm launch dates for the safety range or Reebok-branded smart eyewear, and investors will undoubtedly eagerly await further news from Tekcapital on launch dates later this year.
Innovative Eyewear has implemented a slick global marketing campaign featuring football pundit Micah Richards as a brand ambassador. The campaign will support both its own e-commerce channels and placements in leading outlets.
There is much to suggest that the Eddie Bauer and Nautica product launches may prove to be the pre-match warm-up for the much-anticipated unveiling of Lucyd Armor smart safety glasses and Reebok-branded smart eyewear due to kick-off later this year.