Generation Y marketer Alloy Inc. said that it would realize more than $100 million during its fiscal fourth quarter 2002, compared with the $94-$98 million it had originally predicted. Its fourth quarter will end Jan. 31.
But the New York-based direct marketer also noted that its selling and marketing costs had increased more than it had expected, including more than $2 million in additional fulfillment costs and an added $1 million in merchandise shipping costs. Alloy is also adding $1 million to its selling and marketing expense budgets for increased account management and execution personnel.
As a result its earnings before taxes and amortization would likely drop from the $15 million to $16 million originally predicted to between $11 million and $12 million.
Alloy said that it expects to realize between $63 million-$64 million in merchandise revenue during the quarter, and between $36 million and $37 million in sponsorship revenue.
