RedEnvelope revenue up 71% for the year
Privately held gifts cataloger RedEnvelope says it reaped $56 million in sales for its fiscal year ended March 31—a 71% increase from the previous year. The San Francisco-based company expects to end the current fiscal year with anotehr 50% rise in sales. In addition, RedEnvelope says its on track to reach earnings before interest, taxes, depreciation, and amortization (EBITDA) profitability for this year.
Quarterly sales, earnings fall at Kennametal Metalcutting tools manufacturer/marketer Kennametal (NYSE: KMT), which owns the J&L America industrial supplies catalog, reported net income before items of $16.7 million for the quarter ended March 31. That’s down from $28.0 million for the comparable quarter of 2001. Sales declined 16%, to $393.9 million from $468.2 million a year ago. During the quarter, Latrobe, PA-based Kennametal sold off J&L’s ATS Industrial Supply division. The sale represents a net book loss of $3 million.
1Q loss widens at Concepts Direct Gifts and specialty papers Concepts Direct (Nasdaq: CDIR), which mails the Colorful Images, Linda Anderson, Snoopy etc., Linda Anderson’s Collectibles, and Music Stand catalogs, reported a 15% rise in first-quarter net sales. For the three months ended March 31, sales were $13.9 million, up from $12.1 million a year ago. But the Longmont, CO-based company’s net loss nearly doubled, to $2.1 million from last year’s $1.2 million.
“I believe a turnaround in our business is under way. We are beginning to see growth in our customer file, but at advertising costs above our long-term goal,” chairman/CEO Phillip Wiland said in a statement. “I continue to believe that until our merchandising efforts have had time to affect change in the products we are offering, this trend will continue. These efforts will not likely generate improved results until at least the fourth quarter of this year.”
Sales promotions don’t boost Geerlings & Wade bottom line First-quarter sales for wine marketer Geerlings & Wade (Nasdaq SmallCap: GEER) increased 3%, to $7.4 million. The company attributed much of the improvement to test mailings to acquire new consumers for repeat case sales as well as continuity club promotional offers for its Passport Wine Club program. The company plans to rollout more promotions in the second quarter as part of a revenue improvement plan.
But the sales increase didn’t translate into an improved bottom line. For the three months ended March 31, the Canton, MA-based company’s net loss was $741,000. For the first quarter of 2001, the company lost $174,000. The 52% increase in circulation, higher salary expenses, and slightly increased delivery expenses led to the increase in red ink.