Phoenix Footwear Group Inc. announced consolidated earnings results for the year ended December 29, 2012. For the year, the company reported net sales of $16,738,000 against $15,904,000 a year ago. Operating income was $513,000 against operating loss of $1,011,000 a year ago.

Loss before income taxes and discontinued operations was $414,000 against $1,731,000 a year ago. Loss from continuing operations was $437,000 or $0.06 per basic and diluted share against $1,742,000 or $0.21 per basic and diluted share a year ago. Net loss was $484,000 against $1,261,000 a year ago.

The improvement in net sales for the year was achieved with a 9.7% increase in the average unit wholesale price on an increased unit sales volume of full priced goods of 2.9%, together with a 27% decrease in the sales volume of closed-out goods. As of December 29, 2012, the company's rolling 12 month EBITDA of $771,000 was not in compliance with the minimum EBITDA covenant of $850,000 required in the Loan Agreement and Subordinated Loan Agreement.