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LeapFrog Enterprises, a developer and retailer of learning products for children, reported web sales of $19.2 million for fiscal 2009.
Web sales outgrew total sales in 2009 for LeapFrog Enterprises Inc., a developer and retailer of learning products for children. Online sales got a boost from Learning Path, the company’s free online tool at LeapFrog.com that lets parents monitor and guide their child’s learning progress with LeapFrog products.
For the fiscal year ended Dec. 31, 2009, LeapFrog reported:
- Web sales were $19.2 million, up by 20% from $16.0 million in 2008.
- Total sales were $379.8 million, down 17.3% from $459.1 million.
- The web accounted for 5.1% of sales in 2009, compared with 3.5% in 2008.
- Total U.S. sales were $306.5 million, down 15.7% compared with $363.4 million in the prior year.
- Total international sales were $73.4 million, down 23.3% from $95.7 million in the prior year.
- Net loss was $2.7 million, versus a net loss of $68.4 million in 2008.
- Advertising expenses were $39.3 million, down 41.6% from $67.4 million in the prior year. The decline was mainly due to fewer new services launches and less television advertising “given a shift toward more retail trade promotions and more customized online marketing to our connected customers with our Learning Path system,” says LeapFrog, No. 394 in the Internet Retailer Top 500 Guide (a PDF version of the company’s financial and operating profile can be ordered by clicking on its name). “We delivered the same amount of marketing impressions compared to the prior year and many of those impressions were personalized for our connected customers.”
For the fourth quarter, LeapFrog reported:
- Total sales were $188.6 million, up 36.9% from $137.8 million. LeapFrog did not break out web sales for Q4 2009.
- Total U.S. sales were $155.6 million, up 47.7% compared to $105.3 million a year ago.
- Total international sales were $33.0 million, up 1.7% compared to $32.5 million a year ago
- Net income was $29.4 million, compared with a net loss of $44.1 million in Q4 2008.
- Advertising expenses were $25.7 million, down 36.4% from $40.4 million a year ago, which LeapFrog attributes to reduced television advertising following the shift to more retail trade promotions and more personalized online marketing.
- Advertising expenses were 13.6% of total sales in the fourth quarter of 2009, compared to 29.3% in the fourth quarter of 2008.
“We expect significant sales and earnings growth to continue in 2010 and beyond,” says Jeffrey Katz, chairman and CEO. “Our products are being very well received by consumers, our cost of doing business is dramatically lower, and our Learning Path and product portfolio strategy are producing sales results with substantially lower marketing outlays. We have 3 million connected customers today and expect to have 6 to 7 million after the 2010 holiday season.”