A.T. Cross Company said revenues at its optical business, which owns the Native and Costa del Mar sunglasses brands, grew 19% in the fourth quarter, helping the company exceed its 2010 earnings per share guidance of 45 cents, up from 13 cents in 2009. The company issued earnings per share guidance for 2011 of between 55 and 59 cents.
The figures indicate sales by Cross Optical Group reached $60 million, well short of the $100 million goal the company set when it acquired Native in 2008. ATX had planned to achieve much of that growth through acquisitions, but has not acquired another sunglass brand since the Native deal. The company will release full 2010 financial results Feb. 23.
“Both of our operating segments finished the year with momentum,” said company Chairman and CEO David Whalen. “We were highly focused in 2010 on continuing to invest in Costa, whose growth demonstrates the great potential of the brand, and shaping the Native Eyewear brand to set it up to build scale. In addition, we restored revenue growth to the Cross (writing instruments and other business accessories) brand and are benefiting from the operating leverage provided by its reduced cost structure.”
A.T. Cross, which may still be best known for making Cross pens, acquired the Costa del Sol brand in 2003 and added the Native brand in 2008 with plans to build a $100 million optical business by 2010.
