Communicate.com’s online retail sales shoot up 144% in 2005
Web sales in 2005 at Communicate.com Inc., a retailer that owns 900 b2c and b2b web sites and domain names, grew 144% over 2004’s sales, reaching $4.8 million. Total revenue, which includes advertising sales on its web sites, grew 64% to $5.8 million. Net income was $373,940, a decrease of 25% from the prior year, which the company says is primarily attributable to the fact that the company sold no domain names in 2005, compared to domain name sales of $950,000 in 2004.
"In 2005, e-tail became our prime focus and by far our largest revenue stream, increasing 144% over 2004, allowing us to strategically eliminate our reliance on domain name sales,” said David Jeffs, president. “The fourth quarter, which was the best sales quarter in company history, accounted for approximately 47% of revenue. We remained profitable even as we expanded our workforce and invested significantly more towards marketing and customer acquisition. The result is an e-tail company primed to move to the next level."
The company projects 2006 revenue of $8.5 million to $10 million. “Perfume.com, which has emerged as a leading online fragrance retailer, will account for the majority of revenues this year, while Body.com, recently `soft-launched` as a health and vanity e-tailer, should start to generate meaningful revenues in the second half of the year," Jeffs said.
The company says it expects to reach $50 million in annual sales within three to five years.
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