Geerlings & Wade Posts $1.36M Net Loss for Q2
Geerlings & Wade Inc., a direct mail and Internet marketer of wines and wine-related products, reported yesterday that second quarter sales were $6 million, a drop of 3 percent from last year's second quarter sales of $6.2 million.Geerlings & Wade, Canton, MA, posted a net loss of $1.36 million compared to a net loss of $2.33 million during the second quarter of 2002.
Gross margin fell as a percentage of sales from 54 percent to 49 percent due to "increased costs as a result of changes in promotional offers and to certain transition expenses related to conversion to a new, more efficient, fulfillment operation," the company reported.
It reduced selling, general and administrative expense by $1.24 million to $4.42 million. This was due primarily to a $1.47 million reduction in marketing expenses compared to the second quarter of 2002.
