The payment card network says the platform will provide retailers with another way to acquire customers.
The web declined 4.5%, as retail revenue fell by 14.3% and total revenue by 10.7%.
Frederick’s of Hollywood Inc., a multichannel retailer of women’s intimate apparel and related merchandise says it printed fewer catalogs and diverted more resources to e-commerce in fiscal 2011.
But the company still posted a year-over-year decrease in web sales. For the 2011 fiscal year ended July 30, Frederick’s, No. 270 in the Internet Retailer Top 500, reported:
- That web sales account for 90% of its direct sales. Based on that figure in Fredrick’s recently filed annual report with the U.S. Securities and Exchange Commission, Internet Retailer calculates that web sales declined 4.5% to $35.7 million from $37.4 million in fiscal 2010.
- Direct sales declined year over year 4.6% to $39.7 million from $41.6 million.
- Total sales decreased 10.7% to $119.6 million from $133.9 million.
- Retail sales declined 14.3% to $72.2 million from $84.2 million in fiscal 2010.
- Comparable-store sales fell 11.9%.
- Other sales, which include overseas licensing agreements and other revenue streams, declined 11.3% to $7.1 million from $8 million.
- Net loss was $12 million compared with $21.2 million in fiscal 2010.
- The number of published catalogs dropped 11.1% to 13.6 million from 15.3 million.
Internet Retailer calculates the web accounted for 29.8% of total sales compared with 27.9% in fiscal 2010.
Frederick’s doesn’t break out quarterly e-commerce metrics, but for the fourth quarter did report:
- A decrease in direct sales of about 11.2% to $7.9 million from $8.9 million in the fourth quarter of fiscal 2010.
- Total sales dropped 11.3% to $25.8 million from $29.1 million.
- Retail sales declined 15.0% to $15.9 million from $18.7 million.
- Comparable-store sales fell 13.6%.
- Net loss was about $7.8 million compared with about $12.5 million in the prior year.
Despite the drop in sales, Fredericks will continue to build out its web site and pursue other licensing arrangements to grow the company, says CEO Thomas Lynch.