Essilor International of France reported sales of Costa sunglasses grew at a double-digit pace in the first quarter ended March 31.
“This range should continue in the next few quarters thanks to the intensification of marketing campaigns, boosted by promotions and new contracts with key accounts,” said Essilor COO Laurent Vacherot. “In fact, the main campaigns with eye care professionals and consumer promotions have just started and will last throughout Q2 and Q3. We have also captured new contracts with key players and we will be able to give you more detail on this in July.”
Florida-based Costa was approaching $100 million in annual sales when Essilor acquired it in 2013 for 2.8 times trailing 12 month revenues. The brand has spread across the the Southern United states by hiring country singer Kevin Chesney to pitch its $150 and up polarized sunglasses.
Essilor, which is based in Paris and derives the bulk of its revenue from the manufacture and sale of prescription lens and optical instruments, reported total North America sales rose by €183 million, or 39.2 percent to €650 million during the quarter.
The company said the sharp increase in the value of the U.S. and Canadian dollars, the Chinese yuan, the British pound and the Indian rupee against the euro, accounted for 12.8 percentage points of the growth. The strength of the U.S. dollar, a solid operating performance as well as contributions from recent acquisitions raised the proportion of revenue generated in North America (all divisions combined) to more than 47 percent in the first quarter of the year.
Essilor confirmed its full year 2015 targets of revenue growth of 8-to-11 percent (excluding the currency effect and barring new strategic acquisitions), including organic revenue growth in excess of 4.5 percent and an operating margin excluding new strategic acquisitions of at least 18.8 percent.
