- Total sales increased 11% to $53.7 million
- Glasses sales grew 31% to $16 million
- Glasses Average Order Size grew 40% to $73.26
- Contact lens sales grew 5% to $37.7 million
VANCOUVER, British Columbia, June 10, 2013 (GLOBE NEWSWIRE) -- Coastal Contacts Inc. ("Coastal.com" or "the Company") (Nasdaq:COA) (TSX:COA), the leading online provider of eyewear, today reported financial results for the second fiscal quarter ended April 30, 2013.
"The overall business grew well in the second quarter, with glasses showing particular strength in key markets, such as North America," said Roger Hardy, Founder and Chief Executive Officer. "During the quarter the average order size for glasses grew 40% to $73.26, driven by increasing numbers of returning customers, increases in branded sales and a focused strategy to enhance specialty categories. We continue to see a secular shift towards a better way of buying eyewear as more and more consumers become aware of the value, savings and convenience of buying online. In Canada 47% of glasses revenues in Q2 were generated by returning glasses customers affirming our belief that we are building a stable and recurring revenue model in the eyeglasses category similar to our contact lens business. Since launching the glasses business four years ago, we have served approximately 1.5 million customers in North America alone. We continue to leverage the uniqueness of our offering, which includes vertically integrated state of the art manufacturing facilities; providing rapid delivery of our broad eyewear selection. In the quarter we also experienced record traffic, online impressions and increases in brand awareness.
"Coastal.com is currently investing to become the market leader in the rapidly growing online eyeglasses category. Selling and marketing expenses during the quarter were 31% of sales compared with 23% during the same period in 2012. Over time we expect to reduce advertising expense as our growing glasses business becomes characterized by increased numbers of returning customers and higher gross margins. Cash generated from our profitable contact lens business and recently completed equity financing of approximately $20 million, places Coastal.com in a strong position to maintain our leadership position."