Coastal Contacts Sales Increase 10 Percent to $55.5 Million in Third Quarter of 2013

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VANCOUVER, British Columbia—Total sales for online eyewear provider, Coastal Contacts, Inc. (NASDAQ: COA) (TSX: COA) increased 10 percent to $55.5 million for the third fiscal quarter ended July 31, 2013, when compared with the same period last year. Contact lens sales increased 7 percent to $41.5 million, and eyeglasses sales increased 21 percent to $14 million, with the average eyeglasses order value up 73 percent to $93.07 for the third quarter of 2013 as compared with the same period in 2012. The company reported that this is the 47th consecutive quarter of year-over-year revenue growth.

Net loss for the period was $2.7 million compared to $1.9 million during the same period in 2012.

During the quarter, Coastal reported that its overall North American business grew 13 percent to $27 million, while European business grew 13 percent to $22.9 million, compared to the same period in 2012, and Asia Pacific business declined 9 percent to $5.6 million, due to foreign exchange fluctuations in Japan.

During the quarter, contact lens business in North America and Europe grew 11 percent and 10 percent, respectively, compared to the same period in 2012, while contact lens business in the Asia Pacific region declined 10 percent. Approximately 80 percent of contact lens revenues came from repeat customers. The average contact lens order value increased to $112.01 from $106.30 during the same period in 2012.The company’s proprietary brand of contact lenses, Splash, comprised 5 percent of unit sales during the quarter.

Revenues from eyeglasses sales in Canada grew 25 percent during the quarter while eyeglasses revenue in the U.S. increased 6 percent when compared to the same quarter last year. The company reported North American eyeglasses sales on a consolidated basis of $10.8 million for 2013 compared with $9.3 million in 2012.

Average order values for returning glasses customers grew to $112 in the U.S. and to $173 in Canada. The company attributes this increase in part to a reduction in its “First Pair Free” orders. Coastal shipped a total of 185,114 frames during the quarter, of which 44 percent were the company’s exclusive brands. The company has now served more than 1.6 million unique eyeglasses customers in North America and more than 2.0 million globally.