Gatorz Inc. said revenues in the second quarter ended June 30 slipped by $42,957 to $526,117 from the same quarter last year. Income from operations was $25,665. Total comprehensive (loss) for the quarter was ($49,983) which was due to foreign exchange charges of $55,933 from the weakening US dollar in comparison to the Canadian dollar and Euro.


 
The Ontario, Canada-based company attributed its decline in sales to the introduction of a new premium Italian sunglass line with a lower average sale price compared to the aluminum sunglass line, which is made in the United States. Overall unit sales increased by over 10% for the quarter from the same quarter 2010.


Gatorz introduced the line of premium Italian made injection molded sunglasses this year to provide dealers higher margins. Retail pricing is in the range of $85 – $120 for these frames. This opens a new demographic, which is more attractive to Retail Chains and is expected to lead to increased sales once the Retail Chains are penetrated.

In the first six months of this year Gatorz also:

 


  •  Adopted a new corporate branding strategy, which includes a new Gatorz logo, new G Icon, new company color (red) and an exciting new web-site platform (www.gatorz.com) that interacts with today's youthful lifestyle.
  • Moved Gatorz head offices to Murrieta California and terminated the shared services agreement with No Fear. 
  • Added a number of key employees, including a sales and design team, who bring with them extensive knowledge and experience in the sunglass industry. This new team along with the added relationships will lead Gatorz as it expands its product offerings and drives sales growth into new Retail Chains.

“With the introduction of our premium Italian frames, new branding strategies and the addition of our new sunglass industry team, we are well positioned to better penetrate new Retail opportunities,” said Gatorz CEO Kerry Lynch. “Combine that with our interactive web site and social media recognition we are on target to capture a whole new demographic for Gatorz.”