Lillian Vernon Posts $3.9 Million Net Loss for 1Q
Last year, the cataloger reported $42 million in first-quarter revenues. Company officials blamed the slowing economy and decreased consumer spending, which reduced response to the Lillian Vernon catalog.
The net loss for the quarter was $3.9 million, compared with a loss of $2.1 million during the prior-year period. Results from the 2001 fiscal year included a one-time after-tax charge of $600,000 that resulted from the installation of the SEC Staff Accounting Bulletin.
Despite the loss, the cataloger says it is positioning itself for future growth.
"We are focused on providing customers with new and value-priced merchandise for our peak fall season, as well as controlling inventory levels and expense," said chairwoman/CEO Lillian Vernon. "We will launch a redesigned consumer Web site this September to expand our online product offerings and help increase our customer base."
The company reported that online revenue rose by 65 percent in the first quarter from the same period a year earlier. The cataloger also opened an outlet store in Tennessee, making it the 15th store it owns.