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Tiffany Montgomery
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Spy parent grows in 2010, loss widens

By Tiffany Montgomery
March 25, 2011 8:44 AM

 

Orange 21 Inc., the parent company of Spy Optics, released its results for 2010 this morning.

 

I also looked through the company’s annual report and found out a few more interesting details about its business, including its growth strategy, a breakdown of sales by product type and more.

 

2010 financial results

Net sales: up 2% to $35 million. The increase was due to the addition of the O’Neill and Melodies by MJB licenses, the improvement in the economy, working closely with key accounts and a focus on closeout sales. In North America, sales rose in all product lines.

 

Net loss: widened to $4.6 million from $3.4 million last year. Orange 21 has not achieved profitability for a full fiscal year since its initial public offering, the company said in its annual report.

 

Gross margin: improved to 48% from 40%.

 

Operating expenses: up 13% to $19.4 million.

 

Growth strategy – acquisitions?

The company explained its growth strategy in the annual report.

 

- Expand distribution and brand recognition beyond California.

- Expand international distribution.

- Introduce new products for existing brands

- Build or acquire new brands.

 

“We believe that brand acquisition opportunities currently exist in the action sports and lifestyle markets that would allow us to expand both our product offerings and our target demographics,” the company said.

 

The biggest growth opportunity it sees is adding sporting goods, sunglass specialty and optical retailer accounts around the globe.

 

Door count

The company sells to 3,000 retail locations in the U.S. and Canada and 3,000 doors internationally.

 

Global breakdown

Domestic sales: 72% of total sales.

 

Foreign sales: 28%.

 

Product sales breakdown

Sunglasses: 72% of total sales in 2010.

 

Goggles: 27%.

 

Apparel and accessories: 1%.

 

 

 

 

 


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