Blair’s Q1 web sales are flat, but a higher proportion of total sales

Web-based sales at Blair Corp. reached $25 million in the first quarter, up slightly from $24 million in the first quarter of 2004, the company reported today. Blair’s total sales in the first quarter were down 16% to $107.6 million from $128.6 million, primarily due to the closing of Blair’s Crossing Pointe catalog and web site, which was completed in March. Web sales accounted for 23.3% of all sales in Q1 vs. 18.6% in the year-earlier quarter.

Net income for the first quarter was $650,000, compared to $571,000 in Q1 2004.

The company reported that $7 million of the $21 million reduction in net sales for the first quarter resulted from the shutdown of the Crossing Pointe. $5 million of the reduction was due to reduced prospecting for non-core customers, $2 million was associated with more stringent credit standards, and the balance was attributable to a softness in response rates.

The company says that the reduction in prospecting was part of Blair`s decision to target catalog mailings to the company`s core customer base. The company says softness in response rates is attributable, in part, to higher home heating and gasoline costs driven by the rise in oil prices.

"Blair generated a slight increase in profitability despite lower sales for the first quarter by adhering to its strategic plan of focusing on its core customer base, lowering overall operating costs and reducing unprofitable sales," said Bryan J. Flanagan, senior vice president and CFO. "In addition, by closing down Crossing Pointe, Blair has eliminated the financial burden of costs and provisions for doubtful accounts associated with that catalog title and, as a result, is better positioned to increase profitability in the future."