VANCOUVER – Coastal Contacts Inc. (TSX:COA) slipped into the red in the third quarter despite sizable revenue growth in its key divisions, the online eyewear retailer said Monday.
The Vancouver-based company reported a net loss of $ 1.6 million or three cents a share, reversing year-earlier profits of $ 500,000 or a penny per share.
On a per share basis, losses were three cents per share versus a profit of a penny in the same period a year earlier.
The loss is due to higher expenses across the company’s operations, including a near doubling of advertising costs to $ 8.2 million from $ 4.9 million.
Coastal’s revenue stream improved, however, with sales in the eyeglasses division more than double at $ 12 million, while the contact lens division saw topline performance increase by nine per cent to $ 37.6 million.
Total sales rose to $ 49.6 million from $ 39.5 million the year before, while cost of sales increased to $ 34.5 million from $ 28 million.
About 64 per cent of sales came from returning customers, the company said.
Coastal Contact shares slipped seven cents to $ 2.62 per share in mid-morning trade on the Toronto Stock Exchange.
Local news from metronews.ca/vancouver
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