Spy brand grows in Q4 and 2011

Spy Inc. reported revenue growth for the fourth quarter and full year this afternoon, while the company’s net loss widened for both time periods.

Executive said they were especially pleased with the growth given that Spy started the year with a 10% decline in sales in the first quarter.

New SPY CEO Michael Marckx

The company added new management last year and embarked on a restructuring that led it to shed its licensed brands and to focus and invest anew in its namesake Spy brand.

Spy increased its marketing spend, added headcount and moved into the performance and prescription frame channels.

The company blamed its increased net loss on the decision to drop licensed brands and liquidate that inventory, the liquidation of outdated and overstock Spy styles, and charges due to not meeting production minimums previously agreed to.

Executives said on a conference call that the company is forecasting growth for its Spy brand in 2012, with a renewed focus on partnering with retailers, adding doors in performance and optical channels, increased marketing and international growth.

Q4

Net sales: rose 11% to $8.5 million.

Spy brand sales: $8 million

Net loss: $3.4 million vs. a $3.1 million loss the same period last year.

2011

Net sales: up 10% to $33.4 million

Spy brand sales: $31.1 million

Net loss: $10.9 million vs. a net loss of $4.6 million for 2010.