RedEnvelope Sees Income Up Despite Inventory Problems

Share this article:
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.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Multichannel Marketing

7 Ways to Take Your Marketing Strategy to the Big Leagues

7 Ways to Take Your Marketing Strategy to ...

A game-winning omnichannel strategy must be seamless, synchronous, and symbiotic.

Pet World's Multichannel Marketing Is a Whole Other Animal

Pet World's Multichannel Marketing Is a Whole Other ...

The family owned pet store redesigns its website to bring the in-store experience online.

Complexity's What Marketers Got, Simplicity's What They Want

Complexity's What Marketers Got, Simplicity's What They Want

Customer insights managers want campaign management tools to remain easy to use, even as they up their games with multi-layered campaigns.