Advo Sees Net Income Drop to $12.1 Million

Share this article:
Direct mail marketer Advo Inc. said yesterday that its net income was $12.1 million for the first quarter, down from $14.9 million a year ago. Revenue was $286.9 million, down from $297.5 million in 2000.


The company's first fiscal quarter ended Dec. 29.


Earlier this month, Windsor, CT-based Advo lowered its estimate for first-quarter earnings, partly because of retail advertising softness in the pre-Christmas period. At the time, the company said it expected revenues for the quarter to be $285 million to $287 million.


Even though the quarter closed at the upper end of the company's revised estimates, "we are disappointed with its outcome which was driven by a revenue fall-off in late December as retailers prejudged the holiday season as an environment with little upside and opted not to make incremental advertising investments," Advo chairman/CEO Gary Mulloy said in a statement.


"We continue to pursue a solid long-term growth strategy to position us to take even greater advantage of the inevitable recovery in the economy. This strategy includes enhancements to leverage profits through initiatives to establish partnerships with newspapers and second in-home delivery dates."


In a conference call with investors, Mulloy was asked about Advo's business involvement with beleaguered Kmart, but he said he didn't anticipate that anything will change.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Data/Analytics

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Data/Analytics

Arthur Hughes, Who Wrote the Book on Database Marketing, Dies at 86

Arthur Hughes, Who Wrote the Book on Database ...

First published in the early days of the Web, Arthur Middleton Hughes's Strategic Database Marketing remains a bible for direct marketers.

Word to the Wise: 100% Viewability

Word to the Wise: 100% Viewability

100% viewability is quite the myth.

12 Big Data Facts for Marketers in 2014

12 Big Data Facts for Marketers in 2014

The idea of Big Data is nothing new, but its potential to solve today's problems and spark innovation is unprecedented.