Coastal Contacts Q3 Net Profit rate 1.6% only
Sept, 9, 2009, Wednesday, Coastal Contacts Inc. (COA, TSX), an online retailer of contact lenses and optical eyeglasses, announces an increase in net profit for Q 3, 15% growth in revenues which mainly can be attributed to the quick growth of eyeglasses. Coastal Contacts started to sell optical eyeglasses from early 2008, and has witnessed great growth in this area.
Though enjoyed by the positive growth both in revenue and net earnings, the whole situation of Coastal Contacts is still not ideal. In the third quarter, this Vancouver-based company posted net earning of C$603,000 (foreign exchange gains at C$252,000 in this quarter), and the total revenue of C$37.51 million, with a net profit rate only at 1.6%, which is below industry everage.
Coastal Contacts spent in advertising C$5.04 million in third quarter, which is 26% more than that of last quarter. The company’s ads can be seen from the Google AdWords and AdSense, to the public transit systems around the selective cities in North America.
One exciting news is that COA is experiencing quick growth of eyeglasses sales to the contact wearers. In July, this Canadian company reached C$ 1 million of sales for the eyeglasses, which is the first time to reach this number, and is a milestone in its history. Most of the contacts wearers will mostly buy the relatively cheaper eyeglasses for back up, for the use of a short period of time at home mostly.
In Canada, Coastal Contacts runs its online business under the name ClearlyContacts.ca. Coastal Contacts is the first and the only company which is listed public in the area of online optical store.