Lillian Vernon Corp. saw its sales fall by over $20 million last year thanks to a poor retail environment and a planned decrease in catalog circulation.
The Rye, NY-based catalog reported revenue of $238 million, compared with $259.6 million the previous year. The fiscal year ended on Feb. 22.
In addition, the firm’s net loss rose to $18.6 million, vs. $9.1 million in 2001.
Some of this loss was due to an inability to use tax carryforwards, and to charges related to the company’s paper collar contract. The firm also recorded charges of $700,000 on software charges and $700,000 for increased Internet advertising expenses.
Fourth-quarter sales totaled $86.6 million, down from $96.1 million last year. The company blamed the decrease on reduced circulation, the weak economy and a consumer spending downturn during the Iraq war.
In April, the firm announced that it will be acquired by Ripplewood Holdings L.L.C. CEO and founder Lillian Vernon will step down as CEO when the sale is complete and serve as chairman and spokesperson.
