Pacific Vector Holdings Inc., formerly Gatorz Inc., reported a loss of $1.8 million in its the third quarter ended Oct. 7, against a loss of $128,416 a year ago. Revenues reached $4.1 million, up from $445,515 the prior year.
Earlier this year, Pacific Vector shifting away from a strategy focused only on the Gatorz sunglass brand to acquiring various consumer brands and licenses to operate stores and run multiple bands.
In April 2013, it acquired Ryderz Compound, which operates 34 action-sports oriented stores under the names: Prime Ride Shop, XRyderz and No Fear, for $430,000. In July, it signed a license to open retail stores under the SLS (Street League, Inc.) banner and manage SLS e-commerce. In Nov. 30, it acquired Rob Dyrdek’s DNA brand of business (Alien Workshop, Habitat and Reflex) for $1.5 million. DNA had historical annual revenue in excess of $7.5 million.
The revenue increase in the quarter was due to the Ryderz Compound acquisition. The bottom line was impacted by “unforeseen issues” relating to inventory product mix, supply chain and human resources, coupled with a challenging retail climate shopping season.
The company continues to right-size the business, including re-branding stores to PR7ME Ride Shop, re-designing websites, and capturing synergies from its recent acquisitions. The retail division is expected to break-even in Q413 due to seasonally improved sales but is expected to post losses in the first two quarters of 2014 as its store base still lacks critical mass.
“Pacific Vector continues to deliver acquisitive growth across its divisions while focusing on stabilizing margins, bolstering inventory, providing brand continuity across our retail stores,” said Pacific Vector CEO Robert Reynolds. “[We are] also investing for future growth, particularly in the international and e-commerce areas.”
