Q2 web sales drop 62% for timepiece and gifts retailer Odimo

Having sold off Diamond.com to Ice.com in May, e-commerce sales for Odimo Inc. dropped 61.7% in the second quarter to $4.4 million from $11.5 million in the second quarter of 2005. The company, No. 151 in the Internet Retailer Top 500 Guide to Retail Web Sites , also posted net income of $3.6 million vs. a net loss of $3.2 million in Q2 2005.

For Q2, Odimo, which now operates Ashford.com and WorldofWatches.com, processed 14,941 orders, a drop of 54.4% from 32,780 for Q2 2005.

On Aug. 16, Odimo ceased being listed on the NASDAQ stock exchange and now sells over-the-counter. In May online jeweler Ice.com, No. 193 in the Internet Retailer Top 500 Guide to Retail Web Sites , purchased Diamond.com from Odimo for $9.5 million. Ice.com paid $7.5 million for the domain name, copyright and other intangibles and $2 million for inventory and packaging.

Since the sale of Diamond.com, Odimo has implemented a strategy to significantly reduce personnel, online marketing, and other general and administrative expenses while restructuring operations to become more efficient and focused on the sale of brand name watches and luxury goods, the company says. But in its recently filed quarterly earnings report, Odimo says it expects to experience some cash flow problems through at least the end of the year. “We have incurred significant losses since inception and have not generated and do not anticipate generating positive net cash flows from operations through at least 2006,” the company says. “We are currently exploring financing alternatives, which may not be available on acceptable terms, or at all.”