Net sales for Orange 21 grew by 10 percent to $46.5 million in the fiscal year ended Dec. 31, but that didn't save the company from a net loss of $7,994,000, worse than the $7,185,000 loss booked for 2006. In fact, pre-tax losses declined to $6,542,000 from $7,185,000, but the company had an income tax benefit of $2.3 million the year before.The gross profit margin rose to 49 percent from 41 percent. The profit margin grew, the company said, because of improved efficiencies at its Italian production subsidiary, LEM. A better product offering helped sales and profits.Orange 21 attributed the growth in sales in part to stepped-up sales and marketing efforts, which involved hiring more sales staff. The American company experienced a 12 percent increase in sales and marketing expenses, up to $16.2 million, largely because of a $2.0 million write-off of point-of-purchase displays in the USA. Orange 21 has transferred ownership of these displays to its customers. Some extraordinary costs were incurred in relation to the aborted purchase of No Fear stores. Without those, the loss would have been $3.3 million.