Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
Business-to-consumer revenue rose during the second quarter ended June 30 at eCost.com, but a decline in the e-commerce site’s sales to business customers brought down total revenue by 11.7% year over year to $20.3 million, parent company PFSweb says.
Business-to-consumer revenue rose during the second quarter ended June 30 at online discount retailer eCost.com, but a decline in the e-commerce site’s sales to business customers brought down total revenue by 11.7% to $20.3 million from $23 million a year earlier, parent company PFSweb Inc. says.
The company did not specify how much the b2c side grew, but noted that eCost’s consumer business accounted for 55% of its Q2 revenue. ECost is No. 128 in the Internet Retailer Top 500 Guide.
In its Q2 financial statement and conference call, PFSweb also reports:
- Adjusted EBITDA for eCost.com, or earnings before costs related to interest, taxes, depreciation and amortization, was a loss of $400,000, a 33% improvement from a loss of $600,000 in the year ago period.
- ECost acquired 49,192 new customers, a rise of 67% from the 29,456 new customers acquired in the year-ago period, as its number of active customers rose 30% to more than 222,000.
- Cost of acquiring new eCost customers in Q2 was an estimated $4.44, down from $5.69 a year ago.
- The number of product SKUs available on eCost.com rose 76% to 300,000 as the site expanded product categories including sports and leisure.
- Total revenue for PFSweb, which also includes fulfillment and call center services, fell 26% to $82.3 million from $110.7 million.
- Total Q2 net loss for PFSweb was $2.5 million, compared to year-ago net income of $100,000.
For the six months ended June 30, the company reports:
- ECost revenue declined 19.2% year over year to $41.2 million from $51 million.
- ECost’s adjusted EBITDA narrowed to $800,000 from $1.2 million a year ago.
- Total revenue for PFSweb was $171.3 million, down 25% from $229.2 million a year ago.
- PFSweb had a total net loss for the first half of $2.8 million, compared to year-ago net income of $500,000.