A gain in Q4 sales at Design Within Reach was not enough to bring 2006 into the black for the San Francisco-based furniture maker and multichannel seller.
For the fourth quarter, the company reported $50.1 million in sales compared to $41.4 million during the same period last year. Sales for 2006 rose 13% to $178 million from $158.2 million for 2005.
But in a preliminary earnings report, Design Within Reach said it would post a net loss of between 57 cents and 59 cents per share for 2006, compared to a loss of 15 cents per share in 2005. For Q4 2006, the company said it registered a loss of between 13 and 15 cents per share. That compares favorably to a loss of 28 cents per share during the same quarter last year.
The financial report is preliminary because Design Within Reach is reviewing problems with its accounts. The company was cited last Tuesday by NASDAQ for not filing its annual report on time.
Design Within Reach sells its décor products to both residential and commercial customers through retail studio stores, its catalog, a Web site and a direct sales force. Studio sales were approximately $31 million in Q4, up 27% from the same period last year, and were approximately $108 million for the year, up 22% from $88.2 million in 2005.
Direct sales, including phone sales and transactions through the Web site, were $13.5 million in the fourth quarter of 2005, a 4% year-over-year increase from $12.9 million. But direct sales for the year fell 4% to approximately $49 million, due to lower phone sales during the first half of the year, the company said.
In a statement, CEO Ray Brunner described 2006 as "challenging" for the company.
