Spy Inc., the maker of sunglasses, goggles and prescription frames under they Spy and Spy Optic brands, reported Michael Marckx stepped down as a director and CEO, according to a regulatory filing with the Securities & Exchange Commission.
Seth Hamot, the chairman of the board of directors and majority shareholder, will serve as the company's interim CEO. A separation and consulting agreement provides for Marckx to continue his employment until December 15, 2015, serving as an advisor to the company.
Marckx's departure follows a disappointing earnings report last week, when Spy reported a drop in sales and gross margins for the three and six-month periods ended June 30 due to fewer orders from a key retailer and lower sales of prescription frames. The company's top retailer accounts include Zumiez, Pacific Sunwear, Dick’s Sporting Goods, Tilly’s, Costco, Zappos, Amazon and Sport Chalet.
Since Marckx was promoted to the CEO post in December 2011, Spy has dropped its licensed brands and cut costs to shift resources to developing its action sports inspired Spy brand. The strategy enabled the company to cut its net loss from continuing operations from $7.2 million in 2012 to $1.9 million in 2014. However, the company's stock price fell from $1.65 in January 2012 to 80 cents on Jun 29, 2015, before plunging ahead of the company's August 11 earnings report for the second quarter. On Thursday, XSPY shares traded at 25 cents.
Marckx joined Spy February 2011 as its vice president of marketing and was promoted to president two months later and CEO eight months later. From 2004 until 2011, Marckx was the vice president of global marketing/entertainment of globe international, which manufactures and markets apparel, footwear and board sports hardgoods. From 2001 until 2004, Marckx was the vice president, international marketing/creative director at Ocean Pacific, which manufacturers and markets beach apparel.
Marckx has served as chairman of the board of directors of the non-profit Surfrider Foundation since 2009.
