BabyUniverse Reports $3.3 Million Net Loss for 2006
Internet direct marketer BabyUniverse Inc. has reported a net loss of $3.3 million for the fiscal year that ended Dec. 31, compared to a loss of $492,297 the previous fiscal year.
BabyUniverse reported net sales of $35.5 million in fiscal 2006, versus $23.7 million in net sales for 2005. Fourth quarter sales totaled $8.7 million, compared to $8.2 million in the fourth quarter of 2005.
Although the company reported a substantial increase in net sales, BabyUniverse attributed net losses to high management and employee turnover, which it said contributed to higher operating expenses and an unexpectedly low profit margin. The company said problems have been resolved and that its unaudited profit margin subsequently increased 31% in January and February.
The company operates e-commerce Web sites as BabyUniverse.com, DreamtimeBaby.com, Poshtots.com and PoshLiving.com. It launched BabyTV.com at the end of the fourth quarter.
