Spy Optic...Warehouse sale next Saturday!

While a lot of brand are struggling with the economy, some brands are doing worst than others. Spy Optic is not doing too well these days as it is shown in their quarterly report:

"Consolidated net sales for the three months ended September 30, 2009 were $8.8 million compared to net sales of $12.0 million for the three months ended September 30, 2008. We incurred a net loss of $1.1 million for the three months ended September 30, 2009, compared to net income of $6,000 for the three months ended September 30, 2008. The net loss for the three months ended September 30, 2009 included a $0.7 million increase in inventory reserves for slow moving and obsolete inventory"

At least all those unsold products will be discounted at the one day warehouse sale this saturday.

Another way for them to make some cash is to do a global licensing for other action sports brands like O'Neill: "Orange 21 will design and develop O’Neill Eyewear under a license agreement. The agreement sees Orange 21 working closely with O’Neill’s designers to design, develop, market and sell O’Neill branded sunglasses and snow goggles expected to launch to market in March 2010."

A good boardshop filling for bankruptcy

When I used to live San Diego, I went couple of times at Active and I found guys who were very helpful, had the passion for the sport and I had a great experience there. However Board Sports companies are in the same wagon than other industries so I learn today that Active is filling for bankruptcy.

We can't deny the fact that economy is down, that it is on a large scale that affect a lot of companies. However with that said there are opportunities everywhere and at any given year, I have never heard of a business saying: "it is such a great year, consumers spend thousands, there is no competition and it's a perfect world".

Down time just accelerate and show the true profile of companies and in that case bad management. The filling says: "these losses have been caused primarily by the Debtor's rapid over-expansion and market saturation, during which time the company's same store sales were decreasing substantially"

For sure they could have pull it off a bit longer if there was no recession but a company has to grow in revenue, otherwise an expansion is useless.

I would not be surprised to see quite a few companies filling for bankruptcy such as Spy that has never had a positive balance sheet in its creation in 1994.

Spy Optic: "Expect the best"

With So many sunglasses brands, It may be difficult to create a brand uniqueness.
Spy sunglasses are genuinely hand-crafted in Italy but most importantly they get inspiration from the legendary Southern California coast, where surfers are able to catch the best waves in the world.
The youth culture is permanently evolving and Spy is managing to stay true to its core customers and provide unique and stylish sunglasses.