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Spy continues growth streak

Published November 13, 2012

CARLSBAD, CA (BRAIN) — Spy, a supplier of eyewear to the cycling, motorsports, snow and action sports markets, reported an 8 percent increase in net sales during the third quarter and 10 percent uptick through the first nine months of the year.

Sales revenue for the quarter ending Sept. 30 totaled $9.9 million, compared with $9.2 million for the same quarter last year. Most of the growth was seen in its core Spy brand products, which surged $1.4 million or 17 percent compared to last year. Licensed eyewear — it designed, manufactured and sold eyewear under the O’Neill, Melodies by MJB and Margaritaville brands — is no longer a focus for the company, so sales have dropped off significantly. They made up only $0.1 million for the quarter.

Through September, Spy said sales revenue totaled $27.5 million, up from $24.9 million in 2011. Its core Spy products accounted for $27.1 million of that total. Licensed product sales dropped from $1.7 million last year to $0.4 million, for the same time period.

"We are happy to have achieved our sixth consecutive quarter of year-over-year growth,” said Michael Marckx, Spy’s president and CEO. "We are especially pleased that we were able to grow our North American snow goggle and sunglass businesses because of such a poor snow season last year that we believe caused many of our retailers to have relatively high inventory levels going into this 2012 fall snow goggle buying season."

The company said it was able to trim its net loss for the quarter significantly. Operating expenses—including general and administrative costs—were down compared to 2011, when the company paid more in legal and consulting costs associated with the restructuring of management.

Spy said that it has also reduced the number of employees as it changed its European business from a direct sales model to a distribution model. It anticipates that this change, as well as less spending on marketing programs, will lower its future breakeven point.

The company sells through a select number of independent bicycle dealers, as well as Sport Chalet, Dick’s Sporting Goods and Cabela’s.

Topics associated with this article: Earnings/Financial Reports

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