Execute Sports net sales for the first quarter decreased 7% to $595,534 from $639,610 last year. The company attributed the sales decrease to the discontinuation of its motocross business line, but noted that the decrease was offset by increased sales from the EagleRider apparel program.
Gross margin for the quarter decreased 13 full percentage points to 20% of sales from 33% last year. SG&A expenses increased to 157% from 30.9% last year.
Net loss for the quarter was $824,621, widening from $4,382 during the same quarter last year. The three month year-over-year increase in net loss is due primarily to increased operating costs.
