September 25, 2002, 12:00 AM

Lillian Vernon’s web sales grow 70%

Web-based orders at Lillian Vernon were up 70% in its fiscal first half, but it wasn’t enough to stem a decline in total sales to $72.9 million from $76.5 million.

 

Web-based orders at Lillian Vernon Corp. were up 70% in its fiscal first half, the company reported today. But it wasn’t enough to stem a decline in total sales. Lillian Vernon reported that first half sales were $72.9 million, down 4.7% from last year’s $76.5 million. Q2 sales were $36.1 million, down 2% from $36.8 million in the last year’s Q2.

Lillian Vernon is trying to boost web revenue even more with a new agreement with the MSN shopping portal. The company does not report a dollar figure for web sales.

The first half decline in revenue was the result of a reduction in catalog mailings by 10% to target the catalogs more carefully. As a result, average revenue per catalog increased 7.6%.

The company also reported that it is implementing a pay-for-performance program for distribution center employees to increase their efficiency. It is costing the company about $600,000. Managers won’t know results until after the peak holiday shopping season.

Net loss for the first half was $10.9 million compared to $7.3 million in last year’s first half. Net loss in the second quarter was $6.1 million, compared to $3.4 million for the second quarter of last fiscal year.

Moving into the holiday shopping season, Lillian Vernon will introduce a co-branded MasterCard in October. The card will recognize customer loyalty and the company expects it to increase sales by awarding points toward future purchases.

 

 

comments powered by Disqus

Advertisement

Advertisement

Advertisement

From IR Blogs

FPO

Anna Kuzmina / E-Commerce

An introduction to online payments in Russia

Russian shoppers use a variety of domestic e-wallets quite often when shopping online, a result ...

FPO

Rebecca Kanthor / E-Commerce

An American view of China's online shopping boom

The astronomical growth of Alibaba's Taobao online shopping mall is hard to fathom from a ...

Advertisement