GSI Commerce’s revenue up 39%, merchandise sales up 68%

Revenue at GSI Commerce Inc. grew 39% last year to $335.3 million from $242 million in the previous year, the company reports. GSI also had its first year of profitability, earning $340,000 for the year compared to a loss of $12.1 million in 2003. GSI Commerce provides e-commerce platforms and associated services for retailers and manufacturers.

Merchandise sales—the value of all goods that were sold from the GSI platform, whether sold by GSI itself or a company for which it provides services—reached $475 million in 2004, up 68% from $282 million in 2003.

Merchandise sales were $199.3 million in the fourth quarter of fiscal 2004, a 66% increase from $120.3 million in the fourth quarter of fiscal 2003.

Top 500 Guide

Sales in GSI’s sporting goods category increased 56% 2004 to $200.4 million compared to $128.5 in 2003. Merchandise sales in GSI’s other merchandise categories increased 79% in 2004 to $274.6 million from $153.5 million in 2003.

The company had net income of $10.6 million for the fourth quarter of 2004, up 285% compared to net income of $2.7 million for the fourth quarter 2003.

“The 2004 fiscal year was exciting and successful for GSI Commerce and was highlighted by two important milestones—our first year of net profitability and our fifth consecutive year of above industry average growth,” said Michael G. Rubin, chairman and CEO.

“By delivering world-class e-commerce solutions through centralized infrastructure and capabilities, GSI Commerce leverages the substantial investments required to compete effectively in multi-channel e-commerce,” said Rubin. “While this leverage has always been inherent in our model, we have also invested aggressively in capabilities and infrastructure to serve the leading retailers and brands across a range of product categories. This created a much larger opportunity for GSI Commerce, but also raised the bar for profitability. We are very pleased that with $475 million of merchandise sales in 2004, we have achieved a level of scale that enables us to operate a world-class, multi-partner e-commerce platform and also deliver profitable bottom line results.”

The company expects net revenues this year to be $390 million to $410 million with merchandise sales of $610 million to $630 million and net income of $10 million to $12 million.