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.