Bidz Jewelry Sales Decline, Earnings Down 7.1%

(IDEX Online News) – Online retailer Bidz reported a 7.1 percent decline in net revenues for the third quarter totaling $20.3 million. Bidz.com revenues declined because of lower demand for discretionary items, specifically jewelry, the company said on Monday.

During the third quarter, Bidz.com represented $17.6 million of the total net revenue, and Modnique represented $2.7 million, compared with $20.8 million, and $1.0 million, respectively in the same periods last year.

The significant 162 percent year-over-year increase in net revenues for Modnique.com, the company's boutique website offering access to brand name sale events of handpicked designer merchandise at 50-85 percent off, signifies the overall growth in demand for its online apparel, home, beauty, accessory and footwear products.

The percentages of the Company's domestic and international sales for the third quarter 2011 were 52.3 percent and 47.7 percent, respectively. Canada was the Company's top international market representing 16.7 percent of total revenue for the third quarter 2011.

Gross profit for the third quarter declined to $4.8 million, compared with $5.6 million in the third quarter of 2010. Gross margin in the period decreased to 23.5 percent, slightly up on a sequential basis from 22.6 percent, but down compared to 25.7 percent in the third quarter of 2010.

"Given the current economic conditions and decreased discretionary spending, we believe that we will continue to face challenges for the remainder of the year and into 2012," stated Leon Kuperman, President and Chief Technology Officer.