Advo Sees Net Income Drop to $12.1 Million
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.