8/27/08

Online sales drop at Design Within Reach in Q2

Web sales at Design Within Reach continue to weaken as the company deals with the tough economy. For the second quarter ended June 28, web sales at the retailer fell 16% to $6.3 million from $7.5 million in the prior year.

Mark Brohan , Research Director

Web sales at Design Within Reach Inc. continue to slow as the company deals with the tougher economy.

For the second quarter ended June 28, web sales at Design Within Reach dropped by 16% to $6.3 million from $7.5 million in the prior year. At the same time total revenue for the company, No. 263 in the Internet Retailer Top 500 Guide, dropped by about 3.5% to $44.8 million from $46.4 million. Store sales, which Design Within Reach calls studio sales, rose by 2.2% to $32.6 million from $31.9 million in the second quarter of 2007. The web accounted for about 14% of total sales in the quarter.

For the first six months of the year, Design Within Reach also is reporting declining web sales. In the period of January through June, e-commerce revenue dropped by 12.5% to $12.6 million from $14.4 million in the prior year. The retailer also reported a net loss of $781,000 on sales of $94.2 million, compared with a net loss of $4.4 million on sales of $92.9 million from January through June in 2007. Studio sales rose by 5.8% to $63.9 million from $60.4 million.

Design Within Reach says store sales rose slightly because of expansion and higher revenue from four new locations. But the retailer isn’t expecting much overall growth for the remainder of the year. “In light of the challenging economic environment, the company believes revenue will be flat year-over-year,” says Design Within Reach.

Topics:

business, Business process, Entrepreneurship, Sales, Sales taxes in the United States

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