Reorganization Factor in 16% Drop in Sales at Egghead.com

Share this content:
Egghead.com Inc., Spokane, WA, an online reseller of computer products, reported that consolidated net sales for its fiscal fourth quarter ended March 28, were $74.5 million, a decrease of 16 percent from $88.9 million for the same period last year.


The net loss for the fourth quarter was $35 million vs. a net loss of $35.9 million last year.


For fiscal 1998, the company reported consolidated revenue from operations of $293.1 million, a decrease of 18.8 percent from $360.7 million in 1997. The net loss for fiscal 1998 was $50.2 million vs. a net loss of $39.6 million for fiscal 1997.


The company said its fiscal fourth-quarter and year-end results were significantly affected by its re-organization announced in January. The re-organization included the closing of retail stores, a reduction in headquarters staff and the closure of a Sacramento distribution center.


"Closing the retail stores in favor of repositioning Egghead as an Internet commerce company culminates an 18-month period of dramatic change," CEO George Orban said in a prepared statement. "The level of revenues achieved by our ongoing operations in the past fiscal quarter exceeded our expectations, as did our cash position of $67 million. In fiscal 1999, we plan to focus on expanding our merchandise offer, to further leverage our infrastructure, improve our technology and business process, develop our affiliate program and marketing partnerships and enter the international market."
close

Next Article in Digital Marketing

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above