Innovative Eyewear Inc. Reports Q1 2025 Unaudited Financial Results

Rhea-AI Summary

Innovative Eyewear (NASDAQ: LUCY) reported its Q1 2025 unaudited financial results, showing revenue growth and margin improvements. Revenue reached $454,501, up 19% from Q1 2024's $383,471, driven by new product launches including Nautica® and Eddie Bauer® collections. Gross profit margin significantly improved to 49% from 2% in Q1 2024, due to lower frame costs and improved lens fulfillment efficiency. Despite these improvements, the company reported a net loss of $1,778,703 ($0.72 per share), though smaller than Q1 2024's loss of $1,971,311. Operating expenses increased 11% to $2,124,324. The company recently launched Reebok® Powered by Lucyd sport smart sunglasses in April 2025 and expanded its sales team to support growth initiatives.

Positive

• Revenue increased 19% year-over-year to $454,501
• Gross profit margin improved significantly from 2% to 49%
• Net loss per share decreased from $2.59 to $0.72
• Successfully launched new product lines including Nautica, Eddie Bauer, and Reebok collections
• Expanded sales team with two new experienced sales directors

Negative

• Operating expenses increased 11% to $2,124,324
• Company continues to operate at a significant net loss ($1,778,703)
• Revenue growth of $71,030 is relatively modest in absolute terms

Insights

Financial Analyst

Innovative Eyewear shows revenue growth and vastly improved margins, but remains deeply unprofitable despite operational improvements.

Innovative Eyewear's Q1 results present a mixed picture with some notable improvements. Revenue grew 19% year-over-year to $454,501, driven by new product launches including the Nautica® and Eddie Bauer® collections and Lucyd Armor safety glasses. However, this revenue base remains extremely small for a publicly-traded company.

The most significant positive development is the dramatic improvement in gross margins, which jumped from just 2% to 49%. This transformation stems from two key operational improvements: achieving better economies of scale in frame production and implementing more cost-effective prescription lens fulfillment through their own Lucyd Shift and Blueshift transitional lenses, plus engaging a new low-cost lens supplier in Miami.

Despite these improvements, the company remains deeply unprofitable. Operating expenses increased 11% to $2,124,324, resulting in a quarterly net loss of $1,778,703 or $(0.72) per share. While this represents a slight improvement from the $1,971,311 loss in Q1 2024, the company is still spending nearly 5 times its quarterly revenue on operations.

Looking forward, management is focusing on niche applications in the smart eyewear space, particularly through their new Reebok® Powered by Lucyd sport smart sunglasses and Lucyd Armor safety line. The company has invested in two new sales directors with optical and hardware sales experience to support these initiatives. While these strategic moves show the company is actively working to find product-market fit in the emerging smart eyewear category, investors should note that substantial revenue growth will be necessary to approach profitability given the current cost structure.

Revenue and gross margins improvements

MIAMI, May 13, 2025 /PRNewswire/ -- Innovative Eyewear Inc., (NASDAQ: LUCY, LUCYW), the developer of smart eyewear under the Lucyd®, Nautica®, Eddie Bauer® and Reebok® brands, today announced its Q1 2025 Unaudited financial results.

Net revenue for the quarter ended March 31, 2025 was $454,501 an increase of 19% from revenue of $383,471 in the quarter ended March 31, 2024. This increase was primarily attributable to growth in unit sales volume, largely driven by product launches during 2024 of the co-branded Nautica® Powered by Lucyd and Eddie Bauer® Powered by Lucyd collections, as well as the Lucyd Armor safety smart glasses line. Also contributing to the growth in revenues were the Company's continued investments in marketing and advertising initiatives, as well as increased public interest and growth in smart glasses and the wearable products category. This growth preceded the launch of Reebok® by Lucyd in April 2025.

Gross profit margin for Q1 2025 was 49%, compared with 2% for Q1 2024, driven by lower cost of frames and lower prescription lens fulfilment cost. The decrease in the cost of frames as compared to the prior year quarter was primarily attributable to the combination of realization of greater economies of scale and improvements in product price/mix. The decrease in lens fulfilment costs was attributable to actions taken by management in the prior year to better manage these costs including the launch of Lucyd Shift and Lucyd Blueshift transitional lenses in place of branded third-party transitional lenses and the engagement of a new lower-cost lens supplier based in Miami, Florida.

Total operating expenses in Q1 2025 were $2,124,324, a 11% percent increase from total operating expenses of $2,021,542 in Q1 2024. Total operating and other expenses have remained relatively consistent between these periods.

The Company had a net loss in Q1 2025 of $1,778,703, or $(0.72) per share, compared with a net loss of $1,971,311, or $(2.59) per share, in Q1 2024.

These results reflect a tightening business operation that is finding its footing in an emerging sector, and prioritizing efficiency and operational sustainability.

We believe that the success of the Lucyd Armor product line to date indicates that that delivering smart eyewear for specific user niches can be a significant differentiator. With our experience developing dozens of SKUs (stock-keeping units) of smart eyewear, we are well positioned to address specific user needs in the sport, safety, and general optical categories. In April 2025, we launched the Reebok® Powered by Lucyd sport smart sunglasses collection in eight different styles. This collection features custom high-fidelity speakers, powerful amplifiers, and equalizers specifically tuned for outdoor activities and sports environments. In order to support the launch and expansion of our Reebok® Powered by Lucyd and Lucyd Armor lines, we have recently expanded our sales team with the addition of two new sales directors, who have significant experience in optical sales and hardware sales.

Harrison Gross, CEO of Innovative Eyewear Inc., commented,

"Our 2025 first quarter revenue reflects our continued investments in product lines, marketing and advertising initiatives, as well as increased public interest and growth in smart glasses. We are also happy to see our efforts to improve gross margins bear effect. As we look ahead to the rest of 2025, we believe we are well positioned to build on our momentum and significantly grow total revenues and market share. I am particularly excited about the potential of our newly launched Reebok® product line, which expanded our portfolio to include smart glasses for active lifestyles, coupled with the continued significant traction of the Lucyd Armor^TM smart safety glasses. Both product lines address vast subsets of the eyewear market which were previously underserved by smart eyewear providers."

About Innovative Eyewear, Inc.

Innovative Eyewear is a developer of cutting-edge ChatGPT enabled smart eyewear, under the Lucyd®, Nautica®, Eddie Bauer® and Reebok® brands. True to our mission to Upgrade Your Eyewear®, our Bluetooth audio glasses allow users to stay safely and ergonomically connected to their digital lives and are offered in hundreds of frame and lens combinations to meet the needs of the optical market. To learn more and explore our continuously evolving collection of smart eyewear, please visit www.lucyd.co.

Forward-Looking Statements

This press release contains certain forward-looking statements, including those relating to the Company's business operations, projections, market position, introduction of 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 Contact:
Scott Powell
Skyline Corporate Communications Group, LLC
Telephone: +1 (646) 893-5835
Email: scott@skylineccg.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/innovative-eyewear-inc-reports-q1-2025-unaudited-financial-results-302454553.html

SOURCE Innovative Eyewear, Inc.

FAQ

What was LUCY's revenue growth in Q1 2025?

Innovative Eyewear (LUCY) reported Q1 2025 revenue of $454,501, representing a 19% increase from $383,471 in Q1 2024.

How much did Innovative Eyewear's gross margin improve in Q1 2025?

The company's gross profit margin improved significantly from 2% in Q1 2024 to 49% in Q1 2025, driven by lower frame costs and improved lens fulfillment efficiency.

What was LUCY's net loss per share in Q1 2025?

Innovative Eyewear reported a net loss of $0.72 per share in Q1 2025, compared to a loss of $2.59 per share in Q1 2024.

What new product lines did Innovative Eyewear launch recently?

The company launched Reebok® Powered by Lucyd sport smart sunglasses in April 2025, following earlier launches of Nautica®, Eddie Bauer®, and Lucyd Armor collections.

How much were LUCY's operating expenses in Q1 2025?

Operating expenses were $2,124,324 in Q1 2025, an 11% increase from $2,021,542 in Q1 2024.