Lillian Vernon finds a bright spot on the web
Troubled Lillian Vernon Corp., which has experienced sales declines all year, is finding a bright spot on the web. In fact, Lillian Vernon, founder, chairman and CEO, says, "Our web site is the most exciting segment of our multi-channel business."
Web sales were up 49% in the third quarter, continuing the double-digit growth it has experienced all year, the company reports. It does not break out sales numbers for the web site. By contrast, total sales in the third quarter were down 10% from last year’s third quarter to $78.3 million from $87 million. For the first nine months of the year, sales were down 7.5% to $151.3 million from $163.5 million.
The company says its web operation has brought in younger customers with a higher proportion of male buyers than through the catalog.
The company’s net loss for the third quarter was $4.1 million vs. a profit in last year’s Q3 of $2.6 million. "Our balance sheet remains strong," Vernon said. "Cash and investments at Dec. 17 were $28 million versus $27.3 million on the comparable day last year and there was no debt outstanding."
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