While gift marketer RedEnvelope Inc. saw a jump in its second quarter revenue, from $13.1 million in fiscal second quarter 2006 a year ago to $15.5 million in fiscal second quarter 2007, its net loss deepened as well. For the quarter just ended the San Francisco-based firm’s net loss was $3.7 million, compared with $3.5 million a year ago.
But RedEnvelope’s most recent loss represented a smaller proportion of its total sales: The loss was only 23.7% of sales, compared with 26.6% a year ago.
In a statement, Ken Constable, the company’s president and CEO, attributed the reduction to “agile online and e-mail channel management, as well as increased efficiencies and enhanced product assortment and creative presentation in our catalog channel.”
This week, the company is mailing its first holiday catalog. The company anticipates that the catalog will contribute significant to its third-quarter results — which include the December holiday shopping season.
For all of fiscal 2007, the company anticipates growth of somewhere between 7% and 10%, and that its net loss for the full year will be between $2 million and $2.5 million
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