Lenox Group Inc. posted a net loss of $9.1 million for the first quarter, compared to a net loss of $13 million in the prior year.

The giftware direct marketer reported net sales of $71.4 million for the quarter ended March 29, a decrease from $86.4 million last year.

The firm reported that net direct sales decreased $1.9 million or 10% in the quarter of 2008 compared to last year.

The Eden Prairie, MN company attributed these results to a decision to reduce promotion frequency to increase customer response rates to direct mail advertising campaigns. Lower catalog sales also contributed to this decrease which was partially offset by an increase in Internet sales.

Lenox Group Inc. posted a net loss of $11.3 million for the second quarter compared with a net loss of $41.2 million in the prior year.

The direct marketer and retailer reported revenue of $93 million for the quarter ended June 30, a decrease from $98.4 million last year.

The Eden Prairie, MN firm posted direct sales of $15.8 million for the quarter, a 5% decrease from $16.7 million in he prior year.

The firm attributed this to product sourcing problems experienced during the first quarter and continued lower customer response rates