A.T. Cross Company reported sales of its Cross Optical Group (COG), which owns the Costa and Native eyewear brands, reached $23.8 million in the first quarter, an increase of 19.1 percent compared to last year’s first quarter.
Gross margin was 56.1 percent in 2013, versus 56.2 percent in 2012. Operating expenses were $22.3 million, or 50.2 percent of sales in the 2013 first quarter, versus $21.2 million, or 50.5 percent of sales for the same period a year ago. Operating income in the first quarter of 2013 was $2.6 million, compared to $2.4 million in the first quarter of last year.
Net income for the first quarter was $1.6 million, or $0.13 per diluted share, compared to net income of $1.5 million, or $0.12 per diluted share, last year.
“As our sunglass business enters its peak selling season, it is clear that it has maintained its momentum from 2012 and we expect a strong performance as we move through the spring,” said David G. Whalen, president and CEO of A.T. Cross.
Whalen said two third of the decline at CAD was related to the substantially weaker Japanese Yen and decreased sales of low margin discontinued product. Having said that, while our trend in the European market improved in Q1, we did experience softness in the America and Asia markets which we are addressing.”
On Feb. 4, 2013, the company announced it had begun exploring strategic alternatives for its Cross Accessory Division, which makes Cross pens and other personal accessories. Costs associated with the process totaled approximately $240,000, or a penny per share, in the first quarter of 2013.
A.T. Cross confirmed its January guidance of earnings between 78 and 82 cents per share. The guidance will be reviewed again in July, once the peak sunglass season concludes.
