RedEnvelope Reports $10.3 Million Second Quarter Loss
RedEnvelope Inc. reported a net loss of $10.3 million for catalog and Web sales for the second quarter that ended on Sept. 30, compared to a $3.7 million loss in the second quarter of 2006.
Net revenues in the second quarter were $15.9 million, compared to $15.5 million for the same quarter last year. As of Sept. 30 the company had $4.5 million in cash and short-term investments and no debt.
“Our second quarter results continue to reflect the challenges of our turnaround,” said in a statement John Pound, chairman and CEO.
Net revenues per order grew to $83, up from $78 in the second quarter last year. However, gross profit per order decreased to $33 in the most recent second quarter, compared $39 in the second quarter last year. Response rates fell due to over-promotion, according to the San Francisco based company
RedEnvelope shipped approximately 192,000 orders, a decrease of about 4%. It attributed the decline to a reduction in customer prospecting in the second half of 2007. The company’s house file has approximately 3.5 million customers.
