RedEnvelope In Black Ink After Third Quarter
RedEnvelope Inc. generated net income of $5.3 million during its fiscal third quarter 2007, up from $4.1 million in third-quarter 2006. The company’s revenue rose from $53 million to $57 million during the same period. The quarter ended Dec. 31.
For the first nine months of the gift marketer’s fiscal year, it moved from a loss of $1.1 million to net income of $700,000. The San Francisco-based firm’s revenue jumped from $91.1 million to $99.4 million.
RedEnvelope also cut its marketing expenses from 22.8% of net revenue in third quarter 2006 to 22.1% in the quarter just ended, primarily by shifting spending to e-mail and online channels.
Additionally, within the quarter:
* The company shipped 66,000 orders, down 3.5% from the prior year’s level. Sales increased due to a conscious decision to focus on margin growth
* RedEnvelope added 258,000 new customers, bringing its total customer file to more than 3.3 million names
* The company employed a number of limited time-offers, which boosted sales and helped manage its promotional activity
