Lillian Vernon Corp. had second quarter revenue of $36.8 million, down from $45.8 million last year. The company’s net loss increased from $1.6 million to $3.4 million. The quarter ended Aug. 25.
The Rye, NY-based gift and household products marketer attributed the drop off in revenue to a planned decrease in catalog circulation and a difficult retail environment. Circulation was reduced as part of a continuing cost-reduction plan that included the consolidation of the company’s Neat Ideas catalog into its other books.
The company also mailed its August catalogs later in the quarter compared to last year to better target mailing. The change shifted revenue generated from the drop to the upcoming third quarter.
Chairman and chief executive officer Lillian Vernon announced that in response to the economic downturn, the company would continue its focus on value pricing, and will relaunch its two upgraded consumer Web sites, (www.lillianvernon.com) and (www.ruedefrance.com). The new sites will feature expanded online product offerings. Online revenue for the company was 40% above last year’s level during the second quarter.
Revenue for the six months ended Aug. 25, decreased to $76.5 million, compared to $87.8 million last year. A downturn in consumer spending, the timing differences in catalog circulation and the consolidation of the Neat Ideas catalog all contributed to the lower revenue.
