Lillian Vernon Corp. suffered a net loss of $4.1 million for the third quarter. Last year, the net profit was $2.6 million for the same period.
The company blamed the poor results on “a difficult retail environment.” The Rye, NY-based cataloger also said a 3% reduction in catalog circulation was partly to blame for the loss.
Revenue were $78.3 million for the quarter ended Nov. 23. This compares with revenue of $87 million last year.
For the nine months ended Nov. 23, the net loss was $15.1 million, compared to $4.7 million for the prior year.
Revenue for the nine months was $15.3 million, compared to $163.5 million for the previous year’s nine-month period.
The Web site, http://www.lillianvernon.com, grew nearly 50% in the third quarter, the company pointed out. The Lillian Vernon Master Card for loyalty customers was also introduced during this time.
“The company’s financial position remains strong,” said a company statement. “At the end of the first nine months, stockholders’ equity was $77.3 million, and there was a $9.4 million or 20.3%, reduction in inventory from $46.5 million as of Nov. 24, 2001 to $37.1 million as of the comparable date this year.”
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