CooperCompanies Notes Positive ‘Momentum’ Trend in July-August, But Overall Sales Slip in Third Quarter

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SAN RAMON, Calif.—Citing the ongoing impact of COVID-19, CooperCompanies (NYSE: COO) on Thursday reported that its third-quarter revenue decreased 15 percent year-over-year to $578.2 million, with CooperVision (CVI) revenue falling 12 percent to $449.3 million and CooperSurgical (CSI) revenue dropping 24 percent to $128.9 million. At constant currency, the overall revenue decline was 14 percent compared with last year’s third quarter. The company also reported that net income in the quarter (which ended July 31) fell 54 percent to $55.2 million from $120.1 million in the year-ago quarter. On a nine-month basis, net income slid 54.5 percent to $157.2 million from $345.7 million.

"While our third quarter results were negatively impacted by COVID-19, we solidly exceeded expectations as we experienced a faster than expected recovery,” Cooper president and chief executive officer Albert White said in the earnings announcement. “Both of our businesses improved as we progressed through the quarter and this momentum continued in August."

Cooper said its gross margin fell to 62 percent from 66 percent in last year’s third quarter. On a non-GAAP basis, gross margin was 66 percent, down from 67 percent last year on higher expenses associated with COVID-19, partially offset by product mix at CooperVision.

All of the company’s contact lens categories experienced lower sales in the quarter.

The toric lens segment (which represents one-third of the company’s contact lens sales) had sales of $147.6 million in the quarter, a drop of 9 percent. The non single-use sphere segment (the second-largest at 29 percent) saw sales slide 13 percent to $128.3 million. Sales in the single-use sphere segment totaled $126.5 million in the third quarter, a drop of 14 percent.

On a geographic basis, sales in CooperVision’s Americas segment (the largest CooperVision market) fell 10 percent in the quarter to $176.5 million.

CooperCompanies also noted in its announcement that, due to various factors, it is not able to provide earnings guidance.