Annual Revenue Up, Loss Down for RedEnvelope
RedEnvelope Inc. generated $121.3 million in revenue during fiscal 2007, up from $113.2 million a year earlier. The San Francisco-based gift marketer cut its net loss from $5.6 million to $3.5 million during the same period. The year ended April 1.
While the company shipped roughly 1.4 million orders, 1% fewer during the year just ended then in fiscal 2006, the net revenue per order grew by 8.1%. Gross profit per order jumped from $40 to $45. The company added 514,000 new customers to its roster during the year, bringing its total customer file to approximately 3.4 million individuals.
For its fourth quarter, results were not quite as rosy. The company pulled in $21.9 million in revenue, down slightly from $22 million in fourth-quarter 2006, and its net loss was $4.3 million, compared with $4.5 million a year earlier.
In a statement, executive chairman John Pound attributed the soft fourth-quarter results to “uninspired and unfocused creative message (as manifest in both our catalogs and our Web site)l an unfocused and tired product assortment; and a shift in our marketing focus away from the critical necessity of customer acquisition.”
Pound also said he planned to continue a new focus on rebuilding the customer file while evaluating both the company’s product offerings and messaging. He also will focus on generating orders via the Web, as opposed to the company’s catalogs. RedEnvelope plans to change the look and feel of both its catalogs and Web site in September, he added.
