May 19, 2011, 3:58 PM posts an 11.7% sales decline in Q1

The online jewelry retailer and auctioneer reported sales of $24.9 million for the quarter.

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Online jewelry retailer and auctioneer Inc. reported a sales decline for the first quarter and expects more of the same for Q2.

For the quarter ended March 31, reported:

  • Web sales of $24.9 million, a decrease of 11.7% from $28.2 million in the first quarter of 2010.
  • Net loss of $382,000, compared with net income of $111,000 in the same period of 2010.

Total sales include those from the company’s private-sale web site, which offers apparel and accessories, shoes, beauty products and home goods.

“As we head into the second half of Q2 2011, we are continuing to experience weak sales trends on the site, particularly due to the change-over to the new site user interface in March, which caused a negative impact to our sales as our existing customers had a hard time with the transition,” says Leon Kuperman, president and chief technology officer. “We are optimizing the site based on specific customer feedback. Further, we anticipate that net revenue and gross profit will be lower this quarter, as the second quarter is a seasonally weak period for the company.”

For Q1,, No. 150 in the Internet Retailer Top 500 Guide, also reported:

  • The average selling price per order of $187, down by 7.4% from $202 in the prior year quarter.
  • The number of new buyers was 40,711, down 1.3% from 41,264.
  • The average number of orders per day was 1,550, a 10.3% decline from 1,728.
  • The average number of items sold per day was 6,110, down by 16.3% from 7,298.
  • The average number of items sold per transaction was 3.9, down by 7.1% from 4.2.

The acquisition cost per new buyer was $40, up by 5.3% from $38 in Q1 of 2010.

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