Spy increased revenues by 22 percent to $8.1 million in the first quarter, with a 22 percent increase for the Spy brand alone to $7.9 million. The balance of $0.3 million consisted of closeout inventories of other products that the American company is no longer producing, which dragged down the gross margin. Combined with higher operating costs for wages, new strategic product offerings and marketing investments, this led the company to post a net loss of $2.6 million for the quarter, up from $1.6 million in the year-ago period.