Online retailer Odimo’s 2004 revenue grows 25% over 2003

2004 sales at Odimo Inc., operator of Diamond.com, Ashford.com and WorldofWatches.com, reached $52.2 million, up 25.3% from $41.7 million for the prior year, the company reports. Net loss before dividends to preferred stockholders was $12.5 million for the year vs. $7.1 million for the prior year.

Q4 sales reached $21.5 million, up 17.7% from $18.3 million for the fourth quarter of 2003. Q4 net loss before dividends to preferred stockholders was $1.9 million compared to $2.4 million for the fourth quarter 2003.

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"With the successful completion of our initial public offering in February 2005, the company is better capitalized and positioned for growth," said Alan Lipton, CEO. "We will continue to focus on our growth strategy of attracting new customers, creating long-term relationships with our existing customers, expanding our diamond and diamond jewelry sales, and pursuing operating efficiencies."

In February, Odimo closed its initial public offering and received net proceeds of approximately $22.4 million from the sale of common stock and approximately $1.4 million from the exercise of warrants.

Inventories at Dec. 31 increased to $14.3 million compared to $6 million at Dec. 31, 2003, the company reports. Fulfillment expenses for the fourth quarter 2004 were $1.5 million compared to $1.3 million for the fourth quarter 2003. Fulfillment expenses as a percentage of sales in Q4 decreased to 7% from 7.3% in Q4 2003. For the year, fulfillment expenses increased to $3.5 million vs. $2.6 million for 2003. Fulfillment expenses as a percentage of net sales in 2004 were 6.7% vs. 6.2% for 2003.

Marketing expenses for the fourth quarter 2004 increased 55.9% to $2.8 million from $1.8 million for the fourth quarter 2003 reflecting the company's focus on customer acquisition, increasing the rate of repeat sales through e-mail and retention marketing programs, the launch of the Ashford brand of watches, and increases in online advertising costs, the company says. Marketing expenses for the year were $6.6 million vs. $3.7 million for the prior year.