Design Within Reach reports direct sales of $11.8 million in Q3 2007
Design Within Reach Inc. reports its first profitable quarter in two years, with overall sales of $49 million in the third quarter of 2007, ended Sept. 29, 2007, an 11.6% increase from $43.9 million in the same quarter of 2006.
Design Within Reach, No. 213 in the Internet Retailer Top 500 Guide, reports consumer-direct revenue of $11.8 million in Q3 2007. Direct sales, including web sales of $7.4 million via DWR.com, and phone sales of $4.4 million, were down about 3% from $12.2 million in the third quarter of 2006.
Store, or studio sales for the multi-channel retailer, which specializes in designer furniture at affordable prices, were $31.9 million in the third quarter of 2007, up approximately 16% from the same period last year. Design Within Reach operated 65 studios and an outlet for returned and discontinued merchandise at the end of Q3 2007, compared with 62 studios and the outlet open at the end of the third quarter of 2006. Incremental sales from the three additional studios open from July 2006 through September 2007 amounted to $800,000.
Product sales for the third quarter of 2007 increased 13.1% to $45.8 million, compared to $40.5 million in Q3 2006, attributed mainly to studio sales. Net sales include product sales and shipping revenue of about $3.2 million.
Net income for the third quarter of 2007 was $2.4 million, compared to a net loss of $1.2 million in the prior year quarter.
Online sales represent about 15% of total sales for the quarter, down slightly from 17% in the prior year. Phone sales for Q3 2007 were 9%, down from 10.5% year over year and studio sales were 65% of total sales, up from 62.4%. Other sales and shipping revenue made up the balance of sales.
Net sales for the nine months ending Sept. 29 were $142 million, an 11% increase from $128 million in the same period of 2006. Online sales for the period were flat, at $21.8 million for the current year vs. $21.9 million for the prior year. Phone sales dipped 3.5% from $14.1 million to $13.6 million, while studio sales were up 19.7%, from $77 million in the first nine months of fiscal year 2006 to $92.2 million this year.
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