Coastal Contacts posts bigger losses, higher sales of contact lens, glasses

VANCOUVER – Coastal Contacts Inc. (TSX:COA) has reported a net loss of $15.9 million or 52 cents per share for the 12 months ended Oct. 31, about triple what it was a year earlier.

The Vancouver-based seller of contact lenses and eye glasses says annual sales for the 2013 financial year were $217.6 million, up 11 per cent from nearly $196.1 million a year earlier.

That included $53.4 million of sales in the fiscal fourth quarter, an increase of five per cent over the year-earlier period.

Its fourth-quarter’s loss was $2.9 million, up from a loss of $2.6 million in the comparable period of 2012.

The company primarily sells its products through websites, supplemented by retail showrooms.

The increased loss was due primarily to higher operating expenses and financing costs, partly offset by a tax recovery last year.

Its 2013 full-year, sales and marketing expenses rose to $63.2 million from $47.9 million, while the cost of fulfilling orders rose to $20.2 million from $19.2 million and administration costs rose to $22.4 million from $20.9 million.

Financing costs rose to $1.1 million from $825,000 while the company booked a $186,000 income tax recovery compared with a $500,000 tax expense in fiscal 2012.