A.T. Cross Company said its Costa and Native sunglass brands drove 16.9% sales growth in its optical segment and the vast bulk of total profits in the third quarter ended Oct. 2.
The Cross Optical Group (COG) reported a third quarter sales increase of 16.9%, to $15.1 million. For the nine months ended Oct. 2, COG sales are up 18.3% to $49.1 million from 2009's $41.5 million. COG gross margins expanded 180 basis points for the period.
“The Cross Optical Group continued its exceptional 2010 performance delivering year to date revenue growth of 18% and operating income growth of nearly 30%,” said David G. Whalen, president and CEO for A.T. Cross. “We are excited by the market share gains the sunglass business is achieving and believe that its opportunities and growth prospects are numerous.”
ATX reported total consolidated sales for the quarter increased by 11.8% to $38.2 million compared to $34.1 million in the third quarter of 2009. That included Cross Accessory Division (CAD) revenue of $23.1 million, an increase of 8.7% compared to last year. The CAD sells writing instruments, timepieces and other personal and business accessories.
| A.T. CROSS COMPANY | ||||
| CONSOLIDATED SUMMARY OF OPERATIONS | ||||
| (in thousands, except per share amounts) | ||||
| (unaudited) | ||||
| Three Months Ended | Nine Months Ended | |||
| October 2, | October 3, | October 2, | October 3, | |
| 2010 | 2009 | 2010 | 2009 | |
| Net sales | $ 38,156 | $ 34,129 | $ 114,277 | $ 102,275 |
| Cost of goods sold | 17,410 | 16,184 | 50,107 | 47,172 |
| Gross Profit | 20,746 | 17,945 | 64,170 | 55,103 |
| Selling, general and administrative expenses | 15,918 | 15,090 | 50,053 | 47,553 |
| Service and distribution costs | 1,897 | 1,664 | 5,366 | 5,003 |
| Research and development expenses | 694 | 745 | 2,067 | 1,940 |
| Restructuring charges | — | 252 | — | 1,049 |
| Operating Income (Loss) | 2,237 | 194 | 6,684 | (442) |
| Interest and other (expense) income | (437) | 408 | (853) | (366) |
| Income (Loss) Before Income Taxes | 1,800 | 602 | 5,831 | (808) |
| Income tax provision (benefit) | 170 | (324) | 1,313 | (1,420) |
| Net Income | $ 1,630 | $ 926 | $ 4,518 | $ 612 |
| Segment Data: Cross Accessory Division | ||||
| Net Sales | $ 23,092 | $ 21,246 | $ 65,191 | $ 60,773 |
| Operating Income (Loss) | 248 | (1,418) | (952) | (6,350) |
| Segment Data: Cross Optical Group | ||||
| Net Sales | $ 15,064 | $ 12,883 | $ 49,086 | $ 41,502 |
| Operating Income | 1,989 | 1,612 | 7,636 | 5,908 |
