British Virgin Islands-incorporated holding FGX International Holdings Ltd. announced financial results for the third quarter of 2009, where reported that its earnings from continuing operations more than doubled during this period. Company’s profit made $6.83 million, or 30 cents a share, up from $4.01 million, or 18 cents a share, in the same quarter previous year. BVI company’s revenue rose 14% and made $60.58 million.
The reason for increase in earnings was that company’s acquisition of Dioptics Medical Products continued to raise sales. The Dioptics products sales gave growth to company’s sunglasses business. An increase in revenue from both sunglasses and prescription frames was 70%, and from overseas markets it was 67% – covering the 12% decline in sales of reading glasses. However, international segment of the company benefited from the expansion of a reading-glasses program at a major Canadian chain, and the total drop in sales was attributed to a “shift in the timing of two large program updates.”
In the third-quarter of 2009, FGX International reported the increase of gross profit of 59.3% from 58% in the previous year, due to good product mix, lower product costs and reduced freight fees. Earnings from continuing operations of the company rose 113%, while total operating expenses fell 3%.
The BVI holding company expects sales to grow by 4% or 8% and earnings to increase 20% to 30% next year. It also plans to get a greater benefit from the second year of advertising reading glasses.