Second quarter revenue at GSI Commerce Inc., which provides e-commerce services to retailers, increased 10% to $131.3 million from $119.6 million a year earlier, the company reports. Net loss was $5 million, up from $3.6 million a year earlier. Loss from operations was $9 million compared to a loss of $3.8 million a year ago.
Merchandise sales through the GSI Commerce platform increased 52% to $316 million from $208 million a year earlier. The company reports that new contracts with six retailers so far this year will result in the launch of nine new online stores.
“We expected to see year-over-year declines in our profitability metrics during the second and third quarters of the fiscal year primarily due to the timing of our investment spending, particularly as it relates to start-up costs associated with our new fulfillment center and launch costs for new partners,” says Michael G. Rubin, chairman, president and CEO. “The trends in the industry remain healthy and we remain focused on strong execution as we continue to manage and invest in the business in ways that support both our growth and contribute to our growing annual profitability.”
For the full year, GSI expects revenue of $721 million to $751 million, net income of $41.3 million to $42.5 million and total merchandise sales of $1.64 billion to $1.7 billion.
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