RedEnvelope Sees Income Up Despite Inventory Problems

Share this content:
RedEnvelope Inc. saw a slight increase in net revenue and net income during its recently concluded quarter despite running out of popular items and difficulties fulfilling some holiday orders, the company said yesterday.


The San Francisco company posted total net revenues of $35.9 million during the third quarter that ended Dec. 28, compared to $34.3 million in the third quarter of the prior fiscal year. Net income totaled $1.2 million compared to $900,000 in the third quarter of fiscal 2003.


RedEnvelope president/CEO Alison May, RedEnvelope cited "sourcing issues with some of our products" while commenting on the quarter in a statement. "We purchased our inventory conservatively. This resulted in us not being able to meet all of the demand for our products. In most cases, we initiated outbound calls to customers to let them know that the products they ordered were unavailable and, inevitably, this led to some cancellations."


May also mentioned problems at the distribution center during the holiday season that resulted in not fulfilling some products, including personalized gifts. RedEnvelope said it shipped 453,000 orders in the third quarter.


At the end of the third quarter, RedEnvelope's customer file had 1.7 million names.


close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

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