Bidz Posts 2010 Loss, Expects Weak Demand in 2011
March 13, 11
(IDEX Online News) - Online jewelry retailer Bidz.com saw revenues shrink by 5.1 percent in 2010, declining to $104.8 million and leaving the company with a $1.4 million loss. The decline in revenues was coupled by a rise in the cost of revenues.
After a fantastic year in 2008, the company has been suffering from eroding revenues and net income. The decrease in net revenue was due primarily to weak consumer demand for jewelry and discretionary products, the company said. This was offset by the contributions from the company’s new website, modnique.com, launched in February 2010.
“We expect that demand for our discretionary merchandise will continue to remain weak in 2011 and affect our growth in revenue, as consumers remain cautious with their discretionary spending amid weak economic growth,” the company warned.
The loss comes despite a rise in year over year quarterly sales. Revenues in the December ending quarter totaled $29.1 million, up 5.7 percent. Net income, however, plummeted in the quarter, falling 96.1 percent to just $15,000 from $385,000 the year before.