With 7.5% growth in Q1 revenue, RedEnvelope ends search for buyer
Gifts e-retailer RedEnvelope Inc. has decided to follow a “stand-alone business strategy” after completing a review of strategic alternatives and posting a 7.5% year-over-year revenue increase to $26.9 million for its fiscal first quarter ended July 2, it said yesterday. Jewelry accounted for 26% of net revenue, home products accounted for 18%, it added.
“Our on-target revenue growth and effective margin management resulted in significant leveraging of our operating expenses,” said president and CEO Ken Constable. “We believe that this validates our conviction that we can successfully demonstrate the financial viability of our business model in fiscal 2007.”
RedEnvelope, No. 109 in the Internet Retailer Top 500 Guide to Retail Web Sites, also reported a Q1 net loss of $900,000, which factored in $500,000 in stock option expense, compared to a year-ago net loss of $1.8 million.
It said it shipped 331,000 orders in Q1, an increase of 2.2% over Q1 of last year, as net revenue per order grew 5% to $81 from $77.
RedEnvelope also said it acquired 130,000 new customers in the quarter, bringing its total customer file to more than 3 million names.
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