Blair Q1 web sales drop sharply

It was a rocky start to the year for Blair Corp., which is reporting a substantial drop in total and e-commerce sales for the first quarter.

In Q1 e-commerce sales dropped by 28.2% while net sales declined by 25.9%. For the first quarter, Blair, No. 95 in the Internet Retailer Top 500 Guide, posted e-commerce revenue of $17.8 million, compared with web sales of $24.8 million in Q1 2006.

At same time Blair recorded a net loss of $5.1 million on net sales of $76.1 million in Q1 vs. a net loss of $4.8 million on net sales of $102.7 million for the first quarter of 2006.

The decline in first quarter net sales was a result of lower customer demand and slow response to spring apparel, Blair says. Fulfillment difficulties resulting from the start-up of a new warehouse management software system also adversely affected net sales.

In January, Appleseed’s Topco Inc., a company owned by investor Golden Gate Capital, agreed to acquire Blair Corp. in a cash deal worth $173.6 million. The deal, which must be approved by Blair shareholders, is expected to close this spring.

Blair vice president of marketing Jeff Parnell will be a co-presenter at the Internet Retailer Conference & Exhibition, June 4-7 in San Jose, in a session entitled Making E-Retailing Music: When IT and Marketing Harmonize.