Financial Reports: BabyUniverse, Dover Saddlery

BabyUniverse Seeks Strategic Alternatives Amid Widening Loss
Sales for Jupiter, FL-based Web merchant BabyUniverse shot up 61%, to $8.5 million for the second quarter ended June 30. But the bad news is the company incurred a second-quarter loss of $1.2 million, nearly four times as much as the $322,153 loss for the second quarter of last year, due to restructuring expenses.

In June the company acquired certain assets of ePregnancy.com. In January, BabyUniverse had acquired Richmond, VA-based PoshTots, a multichannel merchant of upscale furnishings for children. Prior to that transaction, in September 2005, the online seller of baby, toddler, and maternity merchandise had purchased DreamTimebaby.com, which specializes in upscale baby bedding.

BabyUniverse also announced that it would explore “strategic alternatives” to boost shareholder value. These could include a sale of the company or the acquisition of another company.

Direct Sales Up 11% at Dover Saddlery
Second-quarter direct sales for equestrian products merchant Dover Saddlery rose 11%, to $14.9 million for the 13 weeks ended June 30. Total sales for the quarter rose 9%, to $17.8 million. But second-quarter net income fell 13%, to $448,000 from $515,000 last year.

In June, Littleton, MA-based Dover Saddlery acquired Chantilly, VA-based retailer Dominion Saddlery, which has four stores in Maryland and Virginia. “The second quarter was marked by the very strong performance of our new annual catalogs for both the Dover Saddlery and Smith Brothers brands,” CEO Stephen L. Day said in a statement. “We were also very pleased to have added four retail stores in the very significant equestrian areas of Maryland and Virginia through our acquisition of Dominion Saddlery.”