The Vermont Teddy Bear Company reported net revenues for the three months ended March 31 of $14.5 million, equalling revenues from the prior year’s quarter.
Net income for this third quarter was $971,000, compared to $1,647,000 for the same quarter last year.
Revenues in the first nine months of the fiscal year increased approximately four percent to $28.9 million from $27.8 million in the same period last year. The company attributes the growthto it’s new PajamaGram segment and the Company’s retail segment, but noted there was a decrease in Bear-Gram revenues.
“We have achieved over $3 million in revenues from the new PajamaGram gift segment in the first nine months of this year,” said CEO Liz Robert. “This tells me that we have a very viable growth opportunity.”
To address the impact of lower gross margins in this segment, the company plans to develop its own designs and to source PajamaGram products directly from existing suppliers overseas.
Marketing and selling expenses increased to $5.8 million or approximately 40.1% of net revenues for the quarter from $5.6 million or approximately 38.5% for the same quarter last year, primarily due to radio, TV and Web advertising expenses for PajamaGrams and TastyGrams.
For Mother’s Day 2003, the Shelburne, VT-based company shipped 64,712 orders, approximately 15% more than the 56,375 orders shipped for the same period in 2002.
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