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Online sales dip in the second quarter for XO Group
But overall sales and net income increase.
XO Group Inc., owner of wedding retail and information sites TheKnot.com and WeddingChannel.com, says its online sales decreased in the second quarter despite increases in overall sales and net income.
For the quarter ended June 30, XO Group, No. 477 in the Internet Retailer Top 500 Guide, reported:
- Web sales of $6.4 million, a 7.2% decrease from $6.9 million in the second quarter of 2012.
- Total revenue of $37.0 million, up by 4.5% from $35.4 million.
- Net income for the quarter was $4.1 million, a 32.3% increase from net income of $3.1 million in the prior year quarter.
- E-commerce sales accounted for 17.3% of overall revenue, down from 19.5% in the second quarter of 2012.
XO Group attributed the online sales decrease to reduced site traffic to one of its e-commerce sites, and overall reductions in conversion rate and traffic to that site as more consumers use mobile devices. Generally, mobile commerce conversion rates and traffic are less than when consumers use desktop computers to visit e-commerce sites.
For the first six months XO Group reported:
- Online sales of $10.2 million, an 18.4% decrease from $12.5 million in the same period last year.
- Total revenue of $67.3 million, a 3.2% increase from $65.2 million in the first half of 2012.
- Net income of $5.8 million, a 65.7% increase from $3.5 million in the same period last year.
- E-commerce sales accounted for 15.2% of overall revenue, a decrease from 19.2% in the first half of 2012.