The Vermont Teddy Bear Company had net profit of $3.7 million for the fiscal year ended June 30, an increase of 115% over the previous year. During the same time period the company’s net revenue rose by 54%, from $21.6 million to $33.3 million.
The record profits highlight the turnaround of the Shelburne, VT-based company following a disastrous expansion into retailing. The company has since switched back to traditional direct marketing methods such as direct response radio advertising and catalog mailings.
Sales of the company’s Bear-Grams have been stimulated by the expansion of its radio ad reach, which currently encompasses 520 radio stations in all 50 states. In the previous year, the company’s ads aired on 250 stations.
As a result, Vermont Teddy Bear’s touchpoints have seen an uptick in visits. Its Web site received 2.2 million hits last year, up from 1.2 million in fiscal 1999, and its call center received 488,395 phone calls, up from 414,126 callers the previous year. The company circulated 20.8 million catalog pages in fiscal 2000, a 30% increase from 16 million.
The company’s foray into retailing during the late 1990s proved ill advised. Its New York City location had a water main break right in front of it, preventing access to the store right before the December 1997 holiday buying season. The other two were subsequently shuttered due to lower-than expected profits.
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