FGX International has reported net income of $2.2 million for the first quarter of 2008, up by 14 percent from a year ago, and net sales of $59.2 million, down from $61.1 million in the same period of 2007. The U.S. company, which went public recently, noted that in the year-ago period it had benefited from around $3.2 million of incremental sales related to a program for non-prescription reading glasses and sunglasses for a major customer.
Sales of non-prescription reading glasses were flat for the period, ended March 29, and sales outside the domestic market fell slightly. There was growth in sales of sunglasses and prescription frames, which the company attributed to new products and increased sales at two major retailers.
In addition to a costume jewelry business, FGX is a OEM supplier of sunglasses for key accounts and produces sunglasses and prescription frames under such brands as Foster Grant, Anarchy, Body Glove, Champion, Gargoyles and Ironman.
The company launched several initiatives on the U.S. market during the period. It opened a program for reading glasses at around 300 stores on military bases; introduced a wall of fashion reading glasses in the women's accessory departments of Target stores; and started selling sunglasses and reading glasses at an additional 215 Paradies airport stores. It launched last month a major $7 million advertising campaign for its Foster Grant brand in the USA.
Starting in September, Wal-Mart plans to directly import its non-branded, lowest-cost reading glasses, which until now have been provided by FGX. However, FGX will still supply the U.S. retailer with Magnivision branded reading glasses.