Osiris Shoes makes clothing and shoes for skateboarders and sponsors pro surfers, skateboarders and freestyle motocross racers. | Photos courtesy of Osiris Shoes

While the action sports industry is reporting declining sales, Osiris Shoes says its revenues have increased.

Clairemont Mesa-based Osiris said its revenues went up 15 percent last year compared with 2007, and registered two-year growth of 35 percent.

“While we have lost some (retail) accounts, we are also seeing higher levels of productivity,” said Jeff Ishmael, chief financial officer of 14-year-old Osiris, which has 30 employees, down from 34 in 2008.

“Certainly, consumer spending has seen very significant declines,” said Joel Margulies of Los Angeles-based MingGang, a marketing consulting agency that specializes in product launches and manages sales promotions.

“The instability of the economy is deteriorating consumer confidence in their ability to cover the cost of the lifestyle,” said Margulies. “The fear of unemployment can turn a spender frugal.”

According to Ishmael, Osiris is still seeing growth in all markets. “We are spending our time focusing on core and key account growth rather than focusing on a specific region.”

Local, Worldwide Presence

Osiris manufactures a clothing and shoe line for skateboarders and sponsors pro athletes from sports such as surfing, skateboarding and freestyle motocross. Osiris products are marketed throughout the world at corporate-run action sports shops, family owned businesses and online.

Margulies says that wealthy consumers are still spending, but others are focusing on paying monthly household expenses and lowering their debt.

Board-Trac, a marketing and research firm, says 59 percent of action sports retailers reported same-store sales were down in the second quarter of 2008 compared with the same period in 2007. Also during that time period, half indicated that margins were down, too.

“In preparation for what we anticipated would be a difficult year in 2009, we reviewed the skill sets of our employees and made changes,” said Ishmael, hired as CFO in 2008. “While we cut … positions, we also hired some very high-caliber people from competitors.”

Those competitors include DC Shoes of Vista, etnies, Sole Technology and Vans.