FGX International has reported a 5 percent sales increase to $64.7 million for the fourth quarter ended Jan. 2, while income from continuing operations grew by 9 percent to $7.5 million. Adjusted to exclude $1.9 million in transaction costs related to the company's merger with a subsidiary of Essilor, the quarterly net income was $9.4 million.
The gross profit margin rose by 2.0 percentage points to 60.0 percent because of a more favorable product mix, lower product costs and reduced freight costs. The adjusted operating income was up by 23 percent to $16.0 million, for a margin of 25.0 percent.
Non-prescription reading glasses saw a 16 percent increase in revenues, while sunglasses and prescription frames fell by 17 percent. Sales outside the U.S. grew by an impressive 40 percent for the fourth quarter, or 28 percent on a currency-neutral basis, mainly due to strong sales of readers to a big retail chain in Canada.
For the full fiscal year, turnover increased by 9 percent to $259.3 million. Income from continuing operations rose by 30 percent to $21.1 million, or $23.0 million excluding the $1.9 million costs. The annual gross profit margin climbed by 0.7 percentage points to 56.8 percent.
Annual adjusted operating income grew by 27 percent to $42.0 million, for a margin of 16 percent, compared with 14 percent for 2008. For the full year, non-prescription glasses increased by 1 percent, and sunglasses/prescription frames jumped by 26 percent. Turnover from outside the U.S. dropped by 1 percent, though this was a 13 percent increase in constant currencies.