August 11, 2009, 12:00 AM

Bidz.com sales lose their luster in the second quarter

Q2 sales tumbled at online jewelry retailer and auctioneer Bidz.com Inc. Sales and net income in the quarter declined by 51.1% and 82.2%, respectively.

Katie Evans

Managing Editor, International Research

Sales tumbled at online jewelry retailer and auctioneer Bidz.com Inc. in the second quarter

In the second quarter ended June 30:

  • Revenue declined 51.1% to $26.9 million from $55 million in the second quarter of 2008.
  • Net income decreased year over year 82.8% to $620,000 from $3.6 million.
  • The average order value in Q2 2009 declined 1.6% to $180 from $183 in the prior year.
  • New buyers decreased year over year 40.5% to 38,577 from 64,882.
  • Average items sold per day in Q2 2009 declined 40.9% to 5,956 from 10,082 in Q2 2008.
“Our revenue continues to be impacted by the weakness in the global economy, particularly the U.S. However, we remain focused on tightly managing our expenses and further strengthening our product offering with an increased assortment of both low- and high-end brand name items to meet customer demand,” says Leon Kuperman, president and chief technology officer for Bidz.com, No. 71 in the Internet Retailer Top 500 Guide.

For the first half of the year:

  • Total revenue declined 50.3% year over year to $58.1 million from $116.9 million.
  • Net income decreased 74.4% to $2.1 million from $8.2 million in the prior year.
“The combination of our extensive brand name product assortment, recent partnership initiatives, careful expense management and enhanced focus on customer experience gives us confidence that we will be able to successfully execute our strategic plan. As we look ahead, we expect to resume year-over-year revenue growth in the fourth quarter and throughout 2010,” says Kuperman.

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