August 19, 2009, 12:00 AM

Q2 revenue at eCost.com declines 12% to $20.3 million

Business-to-consumer revenue rose during the second quarter ended June 30 at eCost.com, but a decline in the e-commerce site’s sales to business customers brought down total revenue by 11.7% year over year to $20.3 million, parent company PFSweb says.

Business-to-consumer revenue rose during the second quarter ended June 30 at online discount retailer eCost.com, but a decline in the e-commerce site’s sales to business customers brought down total revenue by 11.7% to $20.3 million from $23 million a year earlier, parent company PFSweb Inc. says.

The company did not specify how much the b2c side grew, but noted that eCost’s consumer business accounted for 55% of its Q2 revenue. ECost is No. 128 in the Internet Retailer Top 500 Guide.

In its Q2 financial statement and conference call, PFSweb also reports:

  • Adjusted EBITDA for eCost.com, or earnings before costs related to interest, taxes, depreciation and amortization, was a loss of $400,000, a 33% improvement from a loss of $600,000 in the year ago period.
  • ECost acquired 49,192 new customers, a rise of 67% from the 29,456 new customers acquired in the year-ago period, as its number of active customers rose 30% to more than 222,000.
  • Cost of acquiring new eCost customers in Q2 was an estimated $4.44, down from $5.69 a year ago.
  • The number of product SKUs available on eCost.com rose 76% to 300,000 as the site expanded product categories including sports and leisure.
  • Total revenue for PFSweb, which also includes fulfillment and call center services, fell 26% to $82.3 million from $110.7 million.
  • Total Q2 net loss for PFSweb was $2.5 million, compared to year-ago net income of $100,000.
Mark Layton, chairman and CEO of PFSweb, notes that eCost was able to counteract some effects of the economic downturn by increasing by 500% its number of loyalty club members, who make online purchases three times more frequently than non-members. Club members receive twice-weekly promotions.

For the six months ended June 30, the company reports:
  • ECost revenue declined 19.2% year over year to $41.2 million from $51 million.
  • ECost’s adjusted EBITDA narrowed to $800,000 from $1.2 million a year ago.
  • Total revenue for PFSweb was $171.3 million, down 25% from $229.2 million a year ago.
  • PFSweb had a total net loss for the first half of $2.8 million, compared to year-ago net income of $500,000.

comments powered by Disqus

Advertisement

Advertisement

Advertisement

From IR Blogs

FPO

Shmuli Goldberg / E-Commerce

Five tips for winning Amazon's Buy Box during the holiday season

Negative deliveries and bad feedback will keep you from the coveted spot on Amazon.com. On ...

FPO

Jochen Moll / B2B E-Commerce

Grasping the global dimensions of B2B e-commerce

To successfully sell online to businesses around the world suppliers must get a lot of ...

Advertisement