Orange 21 Inc., the parent of the O’Neill and Spy Optic, reported Q3 sales decreased 6.3% in the quarter ended Sept. 30, to $8.2 million from $8.8 million a year ago.
The consolidated net loss for the company narrowed a bit to $900,000 for the three months ended Sept.30, 2010 from $1.1 million for year-ago period. The third quarter included approximately $400,000 in additional direct operating expenses related to the addition of the Margaritaville and Melodies by MJB eyewear brands for which there were minimal sales during the period.
In a conference call with analysts, management said unfavorable weather on the West Coast hindered sales for both snow goggles and sunglasses while the continuing instability of the economy affected small U.S. retail accounts negatively. Additionally, the company said vendor delays in snow goggle production caused some snow goggle sales to be pushed into the fourth quarter.
Net sales for the U.S. and Canada represented approximately 68% and 69% of total net sales in Q3 2010 and Q3 2009, respectively. Net sales to the rest of the world represented approximately 32% and 31% in Q3 2010 and Q3 2009, respectively.
