Web-based sales at Lillian Vernon Corp. grew 40% for the first six months of the year vs. the first six months of last year, the company reports. The web growth came at the same time that overall company sales decreased by 13%. Lillian Vernon does not release web numbers, only percentage growth. For the first six months of the year, Lillian Vernon’s sales totaled $76.5 million, down from $87.8 million a year earlier. Second quarter revenue fell to $36.8 million from $45.8 million a year earlier.
“This was principally a result of a planned reduction in the number of catalogs mailed in the quarter, and a difficult retail environment,” the company said. “Circulation was reduced as part of a continuing cost-reduction plan that included consolidation of Neat Ideas catalog into other catalogs. Additionally, the company mailed its August catalogs later in the quarter compared to last year, to better target the mailings, which shifted revenue from the second quarter to the third quarter.”
The net loss for the second quarter of fiscal 2002 was $3.4 million compared to a loss of $1.6 million for the second quarter of fiscal 2001.
Lillian Vernon, chairman and CEO, said, "Given the economic downturn, we are continuing our focus on value pricing. We will launch our two upgraded consumer web sites (http://www.lillianvernon.com and http://www.ruedefrance.com) this fall to expand our online product offerings and increase online sales.”
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