Lenksart posts 80% sales growth in 2016-17
New Delhi: Eyewear retailer Lenksart posted an 80% sales growth in 2016-17 compared to a year ago, company filings sourced from Tofler showed, even as it managed to keep losses in the same range as the previous year.
During the year, revenue rose to Rs179 crore from the previous year’s Rs100 crore, as Lenskart expanded its offline footprint through franchise stores.
Sales from stores now account for 60% of the company’s overall sales, chief executive officer Peyush Bansal told Mint over a telephone interview.
Net losses were Rs114 crore against Rs113 crore the previous year.
“The entire business growth is coming out of company’s consistent efforts of doubling the franchisee footprint during the financial year,” Lenskart said in its filings.
“The company is continuously looking for avenues for future growth by expanding its footprint through wider franchisee network and creating brand awareness through aggressive media campaigns,” Lenskart said in its regulatory filings.
Bansal said Lenskart plans to have 460 stores selling 400,000 frames every month by March 2018. It currently has about 365 stores.
Revenue from its core business—selling frames online and through franchise stores—grew 69% to Rs160 crore. This was aided by other income equivalent to Rs19.3 crore, up four times, “pertaining to interest income, gain from mutual funds and foreign exchange gain,” the company said.
In 2016-17, its expenditure was Rs294 crore 38% higher than the previous year. Much of this was spent on improving its mobile app experience, marketing and capital expenditure on the supply side, Bansal said.
Lenskart invested Rs60 crore in a new manufacturing facility in Gurugram which opened in September. It can make 20,000 frames a day.
During the year, Lenskart bought a minority stake in a US-based company Ditto, which created the virtual try-on feature popular on Lenskart app.