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Both Optical and Accessory Segments Grew Revenue and Profits
Company Repurchased 1.4 Million Shares for $5.7 Million
LINCOLN, R.I., Oct. 27, 2010 (GLOBE NEWSWIRE) --
A.T. Cross Company (Nasdaq:ATX) today announced financial results for the third quarter ended October 2, 2010.
David G. Whalen, President and Chief Executive Officer of A.T. Cross said, "We are very pleased with our third quarter and year to date performance. In both periods, our business grew by nearly 12% and our bottom line improved significantly. The Cross Optical Group continued its exceptional 2010 performance delivering year to date revenue growth of 18% and operating income growth of nearly 30%. We are excited by the market share gains the sunglass business is achieving and believe that its opportunities and growth prospects are numerous. In the Cross Accessory Division, we continued to see top line growth in every region of the world. As a result of the work done in 2009 to improve our cost structure, growth in the Accessory Division's operating income exceeded revenue growth in both percentage and absolute terms."
Third Quarter 2010 Results
Consolidated sales for the third quarter of 2010 increased by 11.8% to $38.2 million compared to $34.1 million in the third quarter of 2009. The Cross Accessory Division (CAD) recorded revenue of $23.1 million, an increase of 8.7% compared to last year. The Cross Optical Group (COG) reported a third quarter sales increase of 16.9%, to $15.1 million. The Optical Group's revenue growth was driven by growth of both the Costa and Native brands.
Gross margin in the quarter was 54.4% compared to 52.6% in last year's third quarter. Both segments improved their gross margin with the COG expanding 310 basis points.