Wilson’s annual web sales climb 6%, but total revenue drops
Wilson’s The Leather Experts Inc. grew its 2006 e-commerce sales by 5.8% while total sales decreased by 19.3%.
For the year, Wilson’s posted web sales of $6.7 million, up slightly from e-commerce revenue of $6.3% in the prior year. Total sales declined to $321.3 million compared with sales of $398 million in 2005. Net sales for the fourth quarter ended Feb. 3, 2007, decreased 25.7% to $133 million, compared with $178.9 million for the same period in the previous year.
In 2006, Wilson’s, No. 449 in the Internet Retailer Top 500 Guide, posted a loss of $33 million vs. net income of $12.2 million in 2005. “During the 2006 fiscal year, we embarked on a strategy that we believed, in time, would lead to improved top line performance,” says Wilson’s CEO Michael Searles. “We are disappointed that the fourth quarter did not yield the results we had anticipated from a sales perspective. We missed the mark on improving the top line, and as a result have taken a significant step back from a merchandise margin, bottom line and working capital perspective.”
In fiscal 2006, the web accounted for 2% of all sales. Wilson’s uses GSI Commerce Inc. as its third-party e-commerce services provider.
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