Net revenue for San Francisco-based gifts cataloger Red Envelope (Nasdaq: REDE) decreased 9%, to $24.5 million in the first quarter ended July 1. That’s down from $26.9 million in the same period last year. The company’s net loss quadrupled in the first quarter to $3.6 million, compared to a net loss of $900,000 last year.
But John Pound, the company’s executive chairman, said in a release that first-quarter results met expectations. “We expecte to be in a revenue downdraft this quarter, with resulting bottom line losses. This was a result of reduced prospecting late last year and early this year, which resulted in a weakened customer file. Also, our creative and brand statement were weak through Q1, as we had not yet been able to change our message to our customer.”
As of Sept. 1, Red Envelope relaunched its brand through a new catalog in homes Sept. 4 and a new Website launched Aug. 28. “In both channels we have a new, re-invigorated branding statement,” Pound said, “with a strong editorial voice around our core mission: serving as a great, inspired creative resource to our customer as she celebrates relationships and occasions through giving.”