The troubled sunglass market impacted Spy Inc. in the third quarter ended Sept. 30.
Sales dropped 14.6% to $9.4 million. Gross margin contracted to 43.7% vs. 49.2% during the same period last year.
The company’s net loss widened to $800,000 vs. a net loss of $100,000 in the same period last year.
“We are clearly disappointed by the quarter,” Interim CEO and Chairman Seth Hamot said in a statement. “Key accounts and ecommerce business were able to generate modest top-line growth, while our smaller independent retail activities were challenged.”
Going forward, the company will focus on expanding its customer base, growing Spy ecommerce, reducing inventory and controlling costs, he said.
For the nine months ended Sept. 30, sales fell 6.1% to $26.6 million. Closeout sales reached $2.3 million vs. $1.2 million in the same period last year.
The company’s net loss during the nine-month period widened to $1.7 million vs. a net loss of $1.5 million in the same period last year.
For more about the industry’s sunglass woes, read our previous story here.
