VANCOUVER, B.C.— Coastal Contacts Inc. (TSX: COA) reported a substantial increase in its online eyewear sales for its fourth quarter and fiscal year ended Oct. 31, 2011. Overall eyeglass shipments grew a substantial 197 percent to 789,000 units for fiscal year 2011 when compared to the same period in 2010. With 55,000 returning eyeglass customers composing about 25 percent of its total eyeglass customers in the fourth quarter of its fiscal year, the company told investment analysts that it believes it is “changing eyeglass buying habits.” Heading into 2012, the online retailer of eyeglasses and contact lenses will be “a bit more U.S. focused,” company executives announced.

Coastal’s financial results revealed that for the fourth quarter compared to the same period of 2010: total company sales for all categories increased 24 percent to $50.1 million from $40.5 million; total eyeglass sales increased 88 percent to $11.3 million from $6 million; total contact lens sales increased 12 percent to $38.8 million from $34.5 million; gross profit increased 22 percent to $14.4 million; as a percentage of sales, gross margin remained constant at 29 percent of sales. The company posted a loss for the period of $1 million compared with earnings of $1.4 million; and cash and equivalents of $16.9 million compared with $18.3 million. A majority of eyeglass sales (53 percent) in the fourth quarter were Coastal’s proprietary brands.

For the fiscal year ended Oct. 31, 2011 compared to the same period in 2010: total company sales for all categories increased 20 percent to $184.1 million from $153.2 million; total eyeglass sales increased 103 percent to $40 million from $20 million; total contact lens sales increased 8 percent to $144.5 million from $133.7 million; gross profit increased 25 percent to $54.7 million; and gross margin grew to 30 percent compared with 29 percent. The company’s overall loss for fiscal year 2011 was $4.9 million. The company cited “investing in the glasses business” as the reason for the loss. However, Roger Hardy, founder and CEO, observed, “Coastal’s emerging eyeglass business is driving top line growth in multiple markets.”

Other highlights the company noted for fiscal 2011 compared to the same period in 2010: total order volume increased 36 percent to approximately 2.2 million for the 12-month period; the company’s “active” customers grew approximately 500,000 or 15 percent to 3.3 million. In addition, new customers accounted for 33 percent of total orders, and the company launched a proprietary contact lens brand named Splash.

“Our market share continues to grow,” stated the company. This is based on the “sustainable competitive advantage” it has built, including its warehouse, call center and $8.8 million invested in its optical lab. The company services customers in more than 150 countries through its family of websites, including Coastal.com, ClearlyContacts.ca, Lensway.com, Lensway.co.uk, Lensway.se, ClearlyContacts.com.au, ClearlyContacts.co.nz, Contactsan.com, and Coastallens.com, Coastal Contacts Inc.