May 14, 2001, 12:00 AM

RedEnvelope’s Mothers Day sales leap 85%

Mothers Day sales at increased 85% over last year, with less than half the marketing. The company says it makes profitability in the fourth quarter more likely.

Mothers Day sales at increased 85% over last year’s Mothers Day, with less than half the amount it spent last year on marketing, the company reported today.

"Mother`s Day sales take us one more step toward profitability for the fourth quarter," says Martin McClanan, CEO. "Our success is attributed to high margins, a solid marketing mix, and efficient operations. Fundamentally, this combination coupled with our unique merchandise, allows us to attract and retain customers while creating a profitable business model."

Mother`s Day marks the seventh consecutive holiday that RedEnvelope offered express shipping. It achieved 98% fulfillment. Its customer base grew by 50,000 in May to 475,000.

"Between the catalog, web store, e-mail campaigns and online partnerships, we have found a profitable marketing mix," says McClanan. "The catalog serves as a great way to create credibility with our customers. Once they trust us, our consumers use the channel that`s most convenient for them. The net result is that we`ve almost doubled the size of our business in a year while reducing our marketing expense by over half."


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