Geerlings & Wade's Sales Drop Minus Spring Catalog
Net income increased 13 percent to $301,000 for the second quarter ended June 30 compared to $266,000 for the same period a year ago. Revenues dropped 2 1/2 percent to $8.2 million from $8.4 million for the year-ago period.
The results were partly because the company decided not to mail its spring catalog, which generated $380,000 in sales in 1997, but was not profitable. Also, the company didn't ship wine futures, while nearly $280,000 in wine futures were shipped in the comparable period last year.
"We are pleased with the earnings in the second quarter, particularly since we had such a strong second quarter in 1997," said Jay Essa, president and CEO.
Essa noted that in the quarter, the company began selling to customers in Louisiana, opened a new store in Boston, began e-commerce on its Web site and closed on the purchase of the Passport Wine Club.