RedEnvelope Q1 revenue down, reports loss
The company has reported a net loss of $3.6 million, or $0.37 per diluted share, for the period compared to a net loss of $0.9 million, or $0.10 per diluted share, in the first quarter of fiscal 2007. Gross profit margin was approximately 50.2% in the first quarter of fiscal 2008, compared to 53.1% in the same period last fiscal year. The gross margin decrease was primarily due to a shift in the product mix to include more market product, partially offset by higher shipping margins. John Pound, executive chairman, said: "Our first quarter results are consistent with our expectations, and reflect the factors that I outlined in my comments in our year-end release of (July 3, 2007). We expected to be in a revenue downdraft this quarter, with resulting bottom line losses. This was a result of reduced prospecting late last year and early this year, which resulted in a weakened customer file. Also, our creative and brand statement were weak through Q1, as we had not yet been able to change our message to our customer."