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

USAData helps businesses find new customers and grow their current customers through a combination of data and digital marketing services, and easy-to-use SaaS technology products. We enrich customer data so businesses can more effectively target and communicate with customers, and connect them with their best look-alike prospects through digital and traditional channels. We make it easy through simple, self-serve applications and APIs, as well as through full-service programs managed by our Data and Digital experts. 

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