SPY Inc. announced unaudited consolidated financial results for the second quarter and six months ended June 30, 2014. Second quarter sales were $8.2 million in 2014, a decrease of 18% or $1.8 million less than in the second quarter of 2013. The decrease in Net Sales were primarily driven by an overall decline in the consumer market coupled with several key retailers currently holding lower levels of inventory and fewer closeout sales of sunglass products. Income from operations decreased by $0.2 million to $0.1 million in the second quarter of 2014, compared to income from operations of approximately $0.3 million in the second quarter of 2013. The $0.2 million decrease was partially due to the decrease in sales offset with a 271 basis point improvement in gross profit as a percent of sales. The company incurred a net loss of $0.7 million and $0.6 million during the second quarter of 2014 and 2013, respectively. Loss before provision for income taxes was $0.7 million against $0.6 million a year ago.

First half sales were $17.4 million in 2014, a decrease of 9% or $1.6 million less than in the first half of 2013. Sales included lower closeout sales of $0.8 million in 2014, compared to $1.4 million in 2013. The decrease in Net Sales were primarily driven by an overall decline in the consumer market coupled with several key retailers currently holding lower levels of inventory and fewer closeout sales of sunglass products. Income from operations decreased by $0.2 million to $0.2 million in the first half of 2014, compared to income from operations of $0.4 million in the first half of 2013. The $0.2 million decrease was partially due to the decrease in sales offset with a 167 basis point improvement in gross profit as a percent of sales. The company incurred a net loss of $1.5 million and $1.3 million during the first half of 2014 and 2013, respectively. Loss before provision for income taxes was $1.5 million against $1.3 million a year ago. Cash flow generated by operating activities was $1.5 million in the first half of 2014.