Merchandise sales at Alloy Inc. grew 124% to $21.8 million in the second quarter of this year from the second quarter of last and the Internet represents about a third—roughly $7 million--of those sales, Sam Gradess, CFO, tells Internet Retailer.
And while one-third of Alloy’s target market of teenage boys and girls are buying online, as many as 80% use the alloy.com site in some way, Gradess says. Alloy estimates it saves about $1 for each customer who orders a catalog over the web site rather than phoning for one.
Alloy sells apparel and accessories to a teen audience and allows other marketers access to that market as well through advertising on the Alloy site and in the Alloy catalog and by providing research and consulting services.
Total revenues for the second quarter—including merchandise sales as well as ad revenue—grew 133% to $28.7 million from $12.3 million in the second quarter of 2000.
Second quarter sponsorship and other revenues of $7 million were up 171% compared to last year's second quarter reflecting a broader client base, larger marketing programs developed by Alloy's sales force, and a wider range of media services offered, the company said. About a third of that revenue came from advertising at alloy.com.
Alloy's consolidated database of Generation Y girls and boys grew to over 7.6 million names, of which over 1.8 million were established buyers, versus 5.8 million names and 1.1 million established buyers in the middle of last year. Alloy's registered online user base—which includes not just buyers but also visitors who have registered for e-mail services, participated in chat or registered in contests--grew to 4.2 million from approximately 2.6 million a year ago.
The net loss before goodwill amortization, stock-based compensation, gains and losses on sales of marketable securities, and preferred stock-related charges in the second quarter of 2001 was $2.3 million compared to a net loss of $5.5 million for the same period last year. After goodwill amortization, stock-based compensation, gains and losses on sales of marketable securities, and preferred stock-related charges, the net loss for the second quarter was $11.3 million compared to a net loss of $6.9 million in last year's second quarter.
Total revenues for the first half of 2001 increased 176% to $57 million compared to $20.7 million in the first half of fiscal 2000. Net merchandise revenues of $45.5 million were up 187% versus $15.9 million in last year's first half. First half sponsorship and other revenues of $11.5 million were up 140% compared to $4.8 million in last year's first half.
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