STAAR Surgical's Q1 2025: Navigating Contradictions in Inventory Strategy and Market Demand Insights

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Sales and Revenue Trends:
- STAAR Surgical reported total net sales of $42.6 million for Q1 2025, compared to $77.4 million in the year-ago quarter, marking a 57.4% decrease.
- The decline was primarily due to minimal purchases by China distributors, which consumed existing in-country inventory.

China Market Dynamics:
- China sales were $389,000 in Q1 2025, compared to $38.5 million in the year-ago quarter, indicating a dramatic 87.6% year-over-year decrease.
- Despite reported sales decline, market demand for ICL procedures improved, with in-market procedure demand indicating that actual procedures were similar or better than the year-ago period.

Cost Management and Expense Reduction:
- STAAR Surgical aims to achieve an SG&A run rate of approximately $225 million by exiting 2025, down from $63.3 million in the year-ago quarter.
- The company's cost reduction efforts include underutilized facility closures, marketing savings, and personnel reductions to rightsize its business.

Strategic Growth Initiatives:
- STAAR is undertaking initiatives to address tariffs, including consignment agreements and expanded production in Switzerland to mitigate tariff exposure.
- The company is also focusing on growing global operations, particularly in its largest market, APAC, and is preparing for the launch of its EVO+ lens in China, expected later this summer.