Alloy, Inc. this week reported first quarter revenues rose 27% to $87.8 million.
Still, Alloy registered a net loss of $9.6 million for the quarter, due to a 53% jump in operating expenses ($49.8 million for the quarter). The quarter ended April 30.
Alloy, New York, is the parent company of promo shop AMP Agency, PROMO’s 2004 Agency of the Year, and youth marketing shop 360 Youth. Its marketing, media and retail businesses primarily target teens.
Alloy’s first-quarter merchandise revenues rose 48% to $44.3 million, thanks mostly to sales from Delia’s catalogs and stores, which offset declines at Alloy’s other catalogs. Alloy bought Delia’s in 2003.
Alloy’s sponsorship and other marketing revenue rose 10% to $43.6 million. Alloy projects fiscal 2004 merchandise sales will reach $220 million to $230 million, with sponsorship and other marketing projected at $210 million to $220 million.
Alloy has taken its fulfillment and call center in-house and beefed up its merchandising staff. Business should pick up with back-to-school and holiday efforts leveraging its 27 million-name database, including 8.5 million teens, who have bought Alloy goods in the past.
Meanwhile, Alloy avoided being delisted by Nasdaq for late filing of its 10-K for fiscal 2003 ended Jan. 31. In a May 27 hearing, Nasdaq’s Listing Qualifications Panel decided to keep Alloy listed and remove its late-filing designation. Alloy filed the 10-K on May 27.
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