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The wedding products retailer, formerly The Knot, says lower traffic numbers contributed to the decrease.
For the fourth quarter in a row, web sales fell in Q2 for XO Group Inc., formerly The Knot Inc.
- Web merchandise sales of $8.1 million, a 3.6% decrease from $8.4 million in Q2 2010.
- Total revenue increased 13.4% to $34.7 million from $30.6 million in the same quarter last year.
- Online advertising grew to $17.7 million from $15.0 million in the same quarter in the prior year, an 18.0% increase.
Internet Retailer calculates that web merchandise sales comprised 23.3% of total revenue in Q2, compared with 27.5% in Q1.
The retailer says a strong conversion rate and positive response to online promotions in Q2 were offset by lower traffic. XO Group also notes that, despite the nearly 4% decline in web sales, year-over-year comparisons improved, as e-commerce sales were down 17% in Q1.
For the six months ending June 30, 2011, the retailer reported:
- Web merchandise sales of $13.8 million, a 10.4% decrease from $15.4 million in the first half of 2010.
- Total revenue increased by 7.2% to $62.3 million from $58.1 million in the same period last year.
- Online advertising revenue increased 16.6% to $34.4 million versus $29.5 million in the first half of the prior year.
Internet Retailer calculated that web sales comprised 22.2% of total revenue in the first half of 2011, compared with 26.5% last year.