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Coastal Contacts Inc COA



NDAQ:COA - Post by User

Comment by ecomplayeron Mar 21, 2010 10:21am
218 Views
Post# 16907339

RE: please somebody be critical...

RE: please somebody be critical...
Think you are mixing up a few things here. The gross margin was minimally impacted by currency exchange during the latest quarter. On a year over year basis during the quarter, the average value of the CDN/US exchange rate was about the same. Secondly, the cost of sales is largely in the same currency as the revenue so margin is not impacted at all in that scenario.

The bottom line is that the costs as a percentage of sales are increasing. Perhaps this was due to sales promotions during the quarter I don't know. Someone here suggested that since COA has market power they can simply just raise their prices. COA isn't Amazon and anyone who purchases glasses or contacts first has to be examined by a doctor to get their prescription. If COA tries to raise prices too much then you would think that some people will start to select the more convenient option of just getting their glasses or contacts at the store while they are there.

COA needs to demonstrate that the business can scale up and that the eyeglasses market is viable before too many people are going to get excited and drive the price up.



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