The American company reported yesterday a 0.7 percent drop in revenues to $9,131,000 for the first quarter, with lower sales of sunglasses partially offset by higher sales of snow goggles and prescription frames.
The management blamed the ongoing contraction of the action sports retail sector and added that the business would have again enjoyed substantial growth excluding areas impacted by the recent very negative changes in foreign exchange rates.
Anyhow, the gross margin improved to 54.8 percent from 52.0 percent in the same period a year ago. A good response to new offerings of premium products contributed to double quarterly operating earnings to $193,000, reducing net losses to $409,000 from $742,000.
Michael Marckx, president and chief executive of Spy, said he was very excited about recent sales increases in the optical retail channel and “tremendous” growth in pre-orders of snow products.
The company will continue to focus on the development of e-commerce, expand key accounts in the sporting goods and outdoor channels, seize new opportunities for resort partnerships and further expand its Happy Lens offering.