Odimo Q1 2006 financials see a sharp drop
Odimo Inc., which recently sold off Diamond.com to Ice.com, is reporting sharply lower numbers for the first quarter.
In Q1 2006 Odimo, No. 151 in the Internet Retailer Top 500 Guide to Retail Web Sites, posted a net loss of $3.8 million on total sales of $10.4 million compared with a net loss of $2.7 million on total revenue of $12.8 million in the first quarter of fiscal year 2005, a decrease of 18.8%. At the same time, total orders declined 17.9% to 29,624 orders in the first quarter of 2006 from 36,081 orders in Q1 2005.
In conjunction with the sale of its Diamond.com assets to Ice.com, No. 193 in the Internet Retailer Top 500 Guide to Retail Web Sites, and its exit from the jewelry and diamond business, Odimo is implementing a strategy to significantly reduce personnel, online marketing, and other general and administrative expenses while restructuring operations to become more efficient and focused on the sale of brand name watches and luxury goods, the company says.
“We are intensifying our focus on capitalizing on the strengths and opportunities that exist for our WorldofWatches.com and Ashford.com brands, both of which have the potential for solid growth with competitive gross margins," says Odimo president and CEO Jeff Kornblum.
Online jeweler Ice.com purchased Diamond.com from Odimo for $9.5 million, the companies report. Ice.com paid $7.5 million for the domain name, copyright and other intangibles and $2 million for inventory and packaging.
Back...
