Net Loss at Concepts Direct Widens

Longmont, CO–Multititle cataloger Concepts Direct (Nasdaq: CDIR), which mails the Linda Anderson Collectibles, Snoopy, and Colorful Images catalogs, posted a wider net loss of $3.1 million, compared with a net loss of $1.4 million last year. What’s more, gross profit margin declined to 35% in the second quarter, compared with 44% for the same period a year ago. Gross margin declined primarily as a result of increased inventory liquidation efforts. Concepts Direct posted a 21% increase in sales for the quarter ended June 30, to $11.8 million, compared with $9.8 million in sales last year.

Concepts Direct, which laid off about 100 employees or 27% of its workforce in July, is also cutting catalog circulation to inactive customers to decrease costs. “We have also been restructuring the way catalogs are merchandised, analyzed, produced and mailed in an attempt to optimize performance. These initiatives, although well underway, will take several mail cycles to determine if they will be successful,” said president Philip A. Wiland in a statement.

Partner Content

3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
Build the Foundation for Great Customer Experiences - NetSuite
Understand how consistent, timely, relevant and personalized experiences are enabled by having the right technology foundation in place.
Strategies for Maximizing Mobile Point-of-Sale Technology - NetSuite
Learn the top five innovative ways to utilize your mobile POS technology to drive customer engagement, increase sales and elevate your brand.