Online jewelry retailer and auctioneer Bidz.com Inc. reported $207.4 million in sales for fiscal 2008, up by 10.8% vs. $187.1 million in 2007, but a far cry from 41.7% growth from 2006 to 2007.
Net income for fiscal 2008, ended December 31, was $14.4 million, down by 20.4% compared with $18.1 million, in 2007.
Sales for the fourth quarter of 2008 were $35.1 million, a decrease of about 45% compared with $63.2 million in Q4 of 2007. Net income for Q4 of 2008 was $2.9 million, down about 65% vs. net income of $8.2 million.
Things could have been worse, the company says. In the fourth quarter 2008, gross margins were 34.4%, compared with 31.2% in the same period of 2007. Bidz.com attributes its gross margin uptick to the fact it did not promote significantly or use heavy discounting in the fourth quarter of 2008.
"Whilst the retail spending environment remains exceedingly difficult and we expect it will continue to be so through 2009, we believe that our focus on profitability and gross margins combined with our ongoing cost-cutting initiatives, will allow us to remain profitable and financially strong whilst increasing our market share in the global jewelry market," says Leon Kuperman, president.
Key accomplishments for Bidz.com in 2008 included an upgrade of its auction platform, resulting in higher availability, faster response time and greater scalability, the company says. Other initiatives included launching Buyz.com, the company's non-auction e-commerce site and rolling out foreign language versions of its auction site in Spanish in May, Arabic in October and German in December.
Bidz.com is No. 74 in the Internet Retailer Top 500 Guide.
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