Sales Plummet After Circulation Cutback at Kids Stuff
Kids Stuff Inc. announced late Friday a 76 percent drop in second-quarter sales, which was attributed to reduced catalog mailing. Sales fell from $3,973,690 last year to $960,274 in 2001.The net loss for the quarter totaled $955,628, compared with $477,527 for second-quarter 2000.
The company mailed 289,574 catalogs during the second quarter, a drop of more than 85 percent from the 2,242,837 mailed in that period last year.
"The $1.6 million loss for this year is a direct result of reduced catalog circulation," Kids Stuff CEO William L. Miller said. "Catalog circulation has been gradually curtailed as our depleted inventory reduced the catalog's effectiveness. At June 30 we had a working capital deficit of $4.9 million, and this requires immediate financing and an equity infusion."
North Canton, OH-based Kids Stuff entered an agreement June 20 with Cornell Capital Partners, New York, that provides a $3 million equity line of credit.
The company publishes Perfectly Safe, Jeannie's Kids Club and The Natural Baby Catalog.
