Online gifts retailer and cataloger RedEnvelope Inc. is searching for a new CEO. The company, No. 89 in the Internet Retailer Top 400 Guide to Retail Web Sites, announced that CEO Alison May is stepping down.
May will remain with the company until a successor is named, RedEnvelope says.
RedEnvelope also announced executive vice president for merchandising and creative Kristine Dang is leaving.
RedEnvelope didn’t discuss any specific reasons for the change in top management, but the new CEO will need to accelerate RedEnvelope’s financial performance. Though the company is reporting higher revenues and net income for the third quarter and a narrower loss for the first nine months of the fiscal year, RedEnvelope is still expecting better results.
For the third quarter, RedEnvelope is reporting net revenue of $53 million, up 11.6% from $47.5 million in the prior fiscal year. Net income was $4.1 million for the third quarter compared to net income of $2.8 million in Q3 2005.
For the first nine months of the 2006 fiscal year, RedEnvelope is reporting revenue of $91.1 million compared to $79.2 million in the first nine months of the prior fiscal year. The company also reported a net loss of $1.1 million for the first nine months of fiscal 2006 compared to a net loss of $2.1 million for the same period in fiscal 2005. "We are pleased that our net revenue grew more than 11%, but we were expecting more robust growth," May says.