Even as upscale gift marketer RedEnvelope’s financial fortunes were rising, its management was undergoing a shakeup. President and CEO Alison May handed her resignation in to the board of directors, and Kristine Dang, executive vice president of merchandising and creative, has already left the company.
May will stay in her position until a successor is found.
The two executive changes were announced on the same day the San Francisco-based firm reported third-quarter revenue of $53 million, up from $47.5 million a year earlier, and net income of $4.1 million, up from $2.8 million in third-quarter fiscal 2005.
For the first three quarters of the fiscal year, RedEnvelope generated $91.1 million in revenue, up from $79.2 million a year earlier, and trimmed its net loss from $2.1 million a year ago to $1.1 million.
In a statement, May said that the company had expected even more robust growth. She added that while its home, new baby and children’s, gourmet food and plant and flower categories were strong, jewelry and men’s and women’s accessories sales lagged. The company also took a hit by matching the free shipping promotions its competitors were offering during the holiday season.
