Bidz.com Revenues Drop to $27.5 Million in Q4 2009
March 10, 10
Online jewelry retailer Bidz.com reported net fourth quarter revenues of $27.5 million, a drop from the $35.1 million in the fourth quarter of 2008. Bidz’s revenues for the year ending December 31, 2009 were $110.4 million, compared with $207.4 million in 2008.
Bidz attributed the drop in fourth quarter revenues on software problems, saying Tuesday that the migration of the company's proprietary enterprise operating system to a Microsoft ERP system “adversely affected” quarterly revenues.
The company said it believes the overall decrease in net revenues in 2009 was primarily a result of “declines in consumer spending” caused by the global economic crisis, “which disproportionately affected jewelry spending.”
Bidz international sales grew in importance in 2009 representing 31.7 percent of total revenue, compared with 23.9 percent in 2008. Its top five international markets in 2009 were Canada, Australia, Saudi Arabia, The United Arab Emirates and Spain.
The drop in revenues resulted in a drop in profit as well. Fourth quarter gross profit was approximately $8.1 million, down from $12.1 million in the fourth quarter of 2008. Gross profit for the full year was $33.7 million, compared with $58.7 million in 2008.