Online sales at Musician’s Friend rose 25.3% last year to $211.9 million while total sales, including catalogs, rose 17.3% to $365.1 million, the retailer tells Internet Retailer.
Internet advertising expenses pinched margins in the fourth quarter ended Dec. 31, the retailer said. Gross margin declined to 28.8% from 32.2% in the year-ago quarter, as selling, general and administrative expenses as a percentage of net sales rose to 19.9% from 19.1%.
“At Musician's Friend, fourth quarter and 2005 operating margin reflects our increased spending on Internet advertising and promotional expenses, due to an ongoing competitive environment," said Marty Albertson, chairman and CEO of parent company Guitar Center Inc.
Musician’s Friend is No. 47 in the Internet Retailer Top 400 Guide to Retail Web Sites.
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