August 5, 2011, 1:25 PM

XO Group web sales drop again in Q2

The wedding products retailer, formerly The Knot, says lower traffic numbers contributed to the decrease.

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For the fourth quarter in a row, web sales fell in Q2 for XO Group Inc., formerly The Knot Inc.

For the three months ending June 30, 2011, wedding and baby products retailer XO Group, No. 352 in Internet Retailer’s Top 500 Guide, posted:

  • Web merchandise sales of $8.1 million, a 3.6% decrease from $8.4 million in Q2 2010.
  • Total revenue increased 13.4% to $34.7 million from $30.6 million in the same quarter last year.
  • Online advertising grew to $17.7 million from $15.0 million in the same quarter in the prior year, an 18.0% increase.

Internet Retailer calculates that web merchandise sales comprised 23.3% of total revenue in Q2, compared with 27.5% in Q1.

The retailer says a strong conversion rate and positive response to online promotions in Q2 were offset by lower traffic. XO Group also notes that, despite the nearly 4% decline in web sales, year-over-year comparisons improved, as e-commerce sales were down 17% in Q1.

For the six months ending June 30, 2011, the retailer reported:

  • Web merchandise sales of $13.8 million, a 10.4% decrease from $15.4 million in the first half of 2010.
  • Total revenue increased by 7.2% to $62.3 million from $58.1 million in the same period last year.
  • Online advertising revenue increased 16.6% to $34.4 million versus $29.5 million in the first half of the prior year.

Internet Retailer calculated that web sales comprised 22.2% of total revenue in the first half of 2011, compared with 26.5% last year.

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