Retailers shift their ad spending from TV, radio and print ads to digital ads.
Sales declined across the board for Design Within Reach in the second quarter ended July 4. E-commerce revenue declined by 33.9% while total revenue and studio sales decreased 34.7% and 31.9%, respectively.
Sales declined across the board for Design Within Reach Inc. in the second quarter with e-commerce revenue dropping year over year by one-third.
For the quarter ended July 4, Design Within Reach, No. 323 in the Internet Retailer Top 500 Guide, reported:
- E-commerce sales of $4.1 million, a decrease of 33.9% from $6.2 million in the second quarter of 2008.
- Total sales declined year over year 34.7% to $30.8 million from $47.2 million.
- The web accounted for 13.3% of total sales compared with 13.1% in the second quarter of 2008.
- Studio, or store, sales declined 31.9% from $32.6 million in Q2 2008 to $22.2 million in the current Q2.
- Phone sales decreased 48.8% year over year to $2.1 million from $4.1 million.
- Design Within Reach posted a net loss of $7.4 million compared with a net loss of $159,000 in the prior year.
“Sales of our products have been and may continue to be adversely affected by the current unfavorable market and economic conditions,” the retailer says in its recently filed quarterly earnings statement with the U.S. Securities and Exchange Commission. “As a result, we may be required to take significant additional markdowns in response to the lower levels of demand for our products.”
For the first two quarters:
- Web sales declined 26.2% year over year to $9.3 million from $12.6 million.
- Total sales dropped 31% to $64.9 million from $94.1 million.
- Studio sales decreased 28.6% from $63.9 million in the first two quarters of 2008 to $45.6 million.
- Phone sales declined 47.6% year over year to $4.4 million from $8.4 million.
- Net loss widened to $13.4 million from $781,000 in the prior year.