Blair reports Q3 sales drop, net loss

Share this content:

Blair Corporation said net sales for the third quarter ended Sept. 30 decreased 8.6 percent for a total of $89.5 million.

The Warren, PA-based multichannel direct marketer of women's and men's apparel also reported a net loss of $1.1 million, or $0.30 per basic and diluted share, during the same period compared to net income of $1.4 million, or $0.23 per basic and diluted share reported for the third quarter of 2005.

The company said third quarter 2006 results show a 2 percent increase in cost of goods sold as a percentage of net sales over third quarter 2005 levels. This was a result of a first quarter postal rate increase and the loss of a key freight consolidator, who filed bankruptcy, causing ongoing higher outbound freight expenses.

For the nine months ended Sept. 30, net sales decreased 5.9 percent for a total of $307.2 million. However, the number of units sold rose by approximately 2.2 percent, which was offset by lower average selling prices of approximately 6.8 percent as a result of a continued price-point repositioning.

The company reported a net loss for the nine-month period of $5.7 million, or $1.47 per basic share, compared to net income of $8.1 million, or $1.09 per basic share and $1.07 per diluted share reported for the first nine months of 2005.

Blair's e-commerce channel generated $20.2 million and $73.8 million in net sales for the third quarter and first nine months of 2006 respectively, compared to $18.2 million and $64.2 million for the third quarter and first nine months of 2005.

During the third quarter of 2006, Web site traffic increased 19 percent over third quarter 2005 levels, while conversion rates and average order values remained steady. Revenue resulting from investments in keyword searches rose 62 percent, and revenue from natural search has nearly doubled following an intensive Web site optimization project.

Blair reported that it has put in place initiatives to improve site functionality and increase conversion rates this year and, during the quarter, it installed a Web analytics package that will provide more detailed insight into Web customer behavior.


Next Article in Multichannel 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