New Look Eyewear Reports Record Sales for Q2 and First Half

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MONTREAL— New Look Eyewear Inc. (TSX: BCI) announced its results for the second quarter, for the period ending June 28, 2014 and reported record revenues of $35.1 million for the period.

The revenues reflected a 47 percent gain over the prior year period, an increase attributed to the addition of Vogue Optical’s 65 stores last December and the addition of six other stores since the start of the second quarter of 2013.

Same store sales for the quarter declined 3.2 percent, compared to a very strong quarter last year, the company said.

Net earnings of $3.1 million for the quarter were up 14.4 percent from last year reflecting the addition of Vogue Optical, but also included $0.4 million of one-time net development costs related to future acquisitions booked in the quarter.

Subsequent to the end of the quarter, New Look announced that it had entered into agreements to acquire certain assets and business operating under the Greiche & Scaff banner, as reported earlier this week by VMail.

For the first six months of the year, New Look revenues reached $66.9 million, an increase of 51 percent from the prior year. Net earnings for the first half were $4.1 million, up 2.1 percent from 2013’s first half. The company also noted that adjusted EBITDA reached $13.3 million for the first fiscal half.

Martial Gagne, president of New Look, commented, “The second quarter achieved record revenues and adjusted EBITDA and strong cash flows reflecting the impact of the Vogue acquisition late in 2013 and of other acquisitions and store openings since the beginning of 2013. As a result the company was able to successfully begin its debt reductions program post the Vogue acquisition. Same store sales declined compared to a strong Q2 last year.”

Antoine Amiel, vice chairman of New Look, added, “During the quarter, Vogue’s integration progressed according to plans with sharing of best practices and leveraging of the combined entities purchasing power. Considerable progress was made on our strategic growth plan in the quarter with the announcement post quarter-end of the agreement to acquire Greiche & Scaff which will consolidate our leadership position in the Quebec retail optical market.”