But the social network’s advertising revenue grew 18.4% during the quarter.
CEO Susan Lyne will become chairman and Kevin Ryan takes over as CEO.
Gilt Groupe, the invitation-only online retailer of women’s fashion, announced today that its chairman and CEO were swapping roles.
CEO Susan Lyne will become chairman while Kevin Ryan will relinquish his role as chairman to take over as CEO. Ryan, a former CEO of online advertising technology provider DoubleClick, was among the founders of Gilt Groupe in 2007. Lyne, former CEO of Martha Stewart Living Omnimedia, joined Gilt as CEO in September 2008.
"Over the last two years Susan has done an unbelievable job driving Gilt to category leadership,” Ryan says. “The company today operates six distinct business lines, employs 500 people and works with over 1,000 brands. This change will enable Susan to focus on new markets and businesses, key partnerships, and strategic opportunities, while I focus on the day-to-day operational side of the business.”
Gilt, which generated $25 million in revenue in 2008, projects sales of $400-$500 million this year, the company says. "The growth Gilt has experienced is a testament to its innovative model and the team's strong execution," Lyne says. "Kevin and I share a vision for the company's future, having worked full-time side by side throughout the last two years and will continue to do so going forward. I have total confidence in his skills as an operator. This change will allow each of us to focus on areas where we can add the most value, and in doing so accelerate the company's momentum."
Gilt is No. 140 in the Internet Retailer Top 500 Guide.