The Spiegel Group, the direct marketer based in Downers Grove, IL, reported a net loss of $12.2 million, for the quarter ended March 31, largely driven by a 13% drop-off in catalog sales.
Specifically, catalog sales fell to $290.3 million from $332.7 million in the same period last year. In addition, revenue from company credit cards fell 34% while revenue from Visa and MasterCard transactions rose 24%.
For the same period in 2000, Spiegel posted earnings of $20.2 million.
Total revenue for the quarter declined 3% to $749.6 million reflecting a 3% decrease in net sales and a 10% decrease in finance revenue.
Net sales for the quarter included a 2% decline in direct sales and a 3% drop in retail store sales. Direct sales are comprised of a 94% lift in e-commerce sales and a 13% decrease in catalog sales.
“Clearly, the economy has negatively affected consumer behavior and our financial results,” said CFO James W. Stevers, in a statement.
