A.T. Cross Company reported its Cross Optical Group (COG), which owns the Costa and Native eyewear brands, generated record results in the fourth quarter, exceeding its own guidance. COG revenue grew 27 percent to reach $16.3 million in the fourth quarter ended Dec. 29, 2012. Operating income rose by 126 percent to $1.9 million.
Bookings for products Costa and Native launched in December are running well ahead of comparable bookings in December 2011, said President and CEO Dave Whalen.
Results were boosted by Costas new camo-style eyewear, while holiday gift-with-purchase programs for both brands nearly sold out. Finally, key accounts such as Dicks Sporting Goods, Dillards and Hibbetts all experienced strong sell through and increased inventory levels for both brands to meet fourth quarter demand.
Costa, which started as a salt water fishing brand in Daytona, FL, picked up 600 new doors in 2012, primarily in Texas, the Rockies and the Northeast. Also driving growth was sales of Costa prescription sunglasses, which were launched two years ago. Sales of Costa branded apparel grew 60 percent compared to 2011, when the brand launched a line of hats, T-shirts, and long-sleeve shirts. Consumers seem to want Costa to spread to adjacent categories, said Whalen. If apparel is a good indicator then there are significant opportunities in front of us.
Native, which targets mountain sports enthusiasts, grew its door count by 5 percent to about 1,700 in 2012, primarily through successful pilot programs at Bass Pro Shops, Dick’s, and Cabela’s. The brand already has substantial distribution through REI, Gander Mountain and Academy Sports. Natives Locals Only Project, in which mountain towns compete to be named the best mountain town in the United States by submitting content via social media, generated over 40 million impressions and increased Native’s Facebook fans to nearly 20,000.
Whalen said that from Nov. 1, 2012 through last week Native sales were up by more than 20 percent.
For the full year, COGs revenues grew by14.9 percent to $83.3 million, while operating income grew by 24 percent to $13.4 million. That put the business on pace to hit $100 million in 2014 if not sooner.
