In its second-largest acquisition, Amazon buys the company for $970 million.
For the second quarter ended April 30, web sales in U.S. currency increased 16.3% while order volume rose 10% to 624,000. Web sales for the first two quarters grew 19.6%.
Business was brisk for Coastal Contacts Inc. in the second quarter of fiscal 2009.
For the quarter ended April 30, web sales in U.S. currency increased 16.3% to $28.6 million from $24.6 million in the prior year. In Canadian currency, web sales in Q2 of fiscal 2009 for Coastal Contacts, No. 118 in the Internet Retailer Top 500 Guide, increased to $33.3 million from $28.6 million in Q2 of fiscal 2008. Coastal Contacts, an online retailer of contact lenses and glasses, in U.S. currency posted net earnings of $454,263 compared with a net loss of $595,615 in the previous year. In Canadian currency, the company recorded net earnings of $528,000 vs. a net loss of $692,000 in the second quarter of 2008.
“The company is gaining market share in both the contact lens and prescription eyeglasses markets,” says Coastal Contacts CEO Roger Hardy. “The adoption of e-commerce for the purchase of vision care products is increasing as discerning consumers seek value propositions that combine savings and convenience.”
For the first six months of fiscal 2009 web sales in U.S. dollars increased 19.8% to $55.6 million from $46.4 million for the first two quarters of fiscal 2008. In Canadian currency, sales for the first two quarters rose year over year to $64.6 million from $54 million. In Canadian currency, Coastal Contacts for the first two quarters recorded net income of $1.5 million, compared with a net loss of $1.4 million in the prior year. Net earnings in U.S. dollars totaled $1.3 million vs. a net loss of $1.2 million. “Coastal is pleased with its ability to combine revenue, earnings and cash flow growth with investments in our global retail brands and our prescription eyeglasses business,” says Hardy.
Total order volume for Q2 FY 2009 was 624,000, a 10% increase from 567,200 orders in Q2 FY 2008.