In its second-largest acquisition, Amazon buys the company for $970 million.
Quarterly sales at Ashford.com, which is being taken over by Global Sports, fell 33% from year earlier levels while revenue at fashionmall.com dropped 65%. Fashionmall is down to 3 employees and will be at 1 by year’s end.
Sales at Ashford.com, which is being taken over by Global Sports, were for the quarter that ended Sept. 30, down by a third from the same quarter last year, Ashford reported today. Operating losses were $3.8 million, 57% lower than the same quarter last year. Marketing as a percent of revenue fell to 17% from 48% a year earlier and 23% the quarter before.
Ashford announced Sept. 14 that it has entered into a definitive merger agreement to sell all of the company`s outstanding shares to Global Sports Inc. The transaction is expected to close late this year or early next.
Fashionmmall.com is slowly disappearing. Revenue in the third quarter fell 65% to $391,000 from $1.12 million in the third quarter of 2000. The staff is down to three and will be one by the end of the year, the company reported today.
Net income for the third quarter was $516,000 compared to a loss of $933,000 in the same quarter last year.
For the nine months ended Sept. 30, total revenues decreased by $1.1 million to $2.6 million from $3.7 million in the same period last year. Net loss was $73,000 compared to $4.17 million in the same period in the prior year.
“Management will continue to review if the current operating business of managing Internet portals is the most appropriate for the company to pursue,” Fashionmall said in a statement accompanying the release of its results.
Further in the statement, Ben Narasin, CEO, said, "We have experienced a softening sales trend such that we do not believe we will achieve the total sales or non-barter sales levels of the prior year. Management cannot be sure as to what sales level will be achieved in the current year or our ability to reduce expenses significantly enough in order to offset any loss in sales that may be realized. We have more cash than is needed to fund our current operations and we are considering how best to use such cash, including, by making acquisitions, issuing special dividends or finding other options to provide opportunities for liquidity to our shareholders at some time in the future. We expect continuing losses from operations and future profitability remains uncertain. If business continues to erode, we may choose to discontinue the current operating business and/or look for other opportunities, which may include, entering into a new line of business or engaging in a merger transaction or a sale of assets."