August 12, 2005, 12:00 AM

Odimo’s Q2 sales rise 11.7% year-over-year

Jewelry and gift retailer Odimo Inc. reported net sales of $11.5 million for the second quarter, up 11.7% from $10.3 million in the year-earlier period. Odimo operates Diamond.com, Ashford.com and WorldofWatches.com.

 

Jewelry and gift retailer Odimo Inc. reported net sales of $11.5 million for the second quarter, up 11.7% from $10.3 million in the year-earlier period. Odimo operates Diamond.com, Ashford.com and WorldofWatches.com.

Net losses also improved for the quarter, decreasing to $3.3 million from $6.7 million a year earlier, helped by higher average order values and stabilization of growth in advertising and general and administrative costs, the company said.

Q2 gross profit declined 3.4% to $2.8 million from $2.9 million a year earlier. Gross profit as a percentage of net sales dropped to 24.6% from 27.8% in 2004. Odimo attributed the drop to a mix shift toward lower margin diamond sales.

Fulfillment costs rose 19.3% to $805,000 in the second quarter from $675,000 a year earlier. Fulfillment expenses as a percentage of net sales increased to 7% from 6.6% in 2004’s second quarter.

Marketing expenses 38.5% to $1.8 million, up from $1.3 million a year earlier. The increase represented the focus on customer acquisition and increasing repeat sales through retention marketing programs.

For the six months ended June 30, net sales increased 16.9% to $24.2 million from $20.7 million in the first six month’s of 2004. Net losses decreased to $6.8 million from $20.5 million in the year-earlier period.

 

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