Sales of Costa and Native sunglasses continued to drive growth at A.T. Cross & Co. in the second quarter, when sales at Cross Optical Group (COG) rose 21.4 percent to $24.7 million.
The strong performance prompted ATX executives last week to up their EPS guidance for the year to 67 to 70 cents per share from 56 to 60 cents per share.
ATX President and CEO David Whalen attributed growth at Costa, which is marketed primarily to fishermen and other watersports enthusiasts, to constant product innovation. Its patented 580p, or polycarbonate color enhancing lens technology launched a year ago and its new line of prescription sunglasses helped Costa boost its door count by 450 to 5,150 in the first half. Importantly, 580 technology, which is available in both polycarb and glass, commands a higher price and delivers a higher margin than the technology it is replacing, said Whalen. It is one of the reasons that, despite some inflationary pressures, Costa is growing its gross margin percentage.
In a page out of the NASCAR playbook, Costa has partnered with Kenny Chesney to promote the brand. Our research tells us that there’s a great link between fishing and country music, said Whalen. Costa is now part of that link.
The Native brand, which ATX acquired in 2008, opened 100 new doors in the first half, including test stores with Bass Pro. ATX thinks it can grow Natives door count from 1,400 to as many as 6,000.
