« You've Got The Money: Which Luxury Watch Do You Want? | Main | Vacheron Constantin Voted #1 Watch. »
Diamond.com Reports 46% Loss for 3Q.
Online retailer Odimo Incorporated reported a decline in net sales for the three month period ending September 30, 2005, to $9.1 million compared with $10 million in 2004. Odimo’s net loss for the period increased to $3.5 million compared to $2.4 million in the third quarter of 2004. Headquartered in Florida, Odimo operates three websites -- diamond.com, asford.com and worldofwatches.com.
Odimo’s diamond sales for the third quarter decreased marginally to 33.7 percent of gross sales, as compared with 34.2 percent of gross sales in the previous corresponding quarter. Jewelry sales in the three month period increased to 15.9 percent of gross sales, compared with 12.9 percent of gross sales in 2004. Luxury goods sales decreased to 11.6 percent of gross sales, compared with 14.4 percent of gross sales, watch sales marginally increased to 38.8 percent of gross sales.
For the nine month period ending on September 30, net sales increased 8.5 percent to $33.4 million. Net loss in the nine month period decreased to $9.5 million, compared with 10.6 million in the first nine months of 2004.
Gross profit for the third quarter of fiscal 2005 was down to $2 million, (22.3 percent of net sales) compared with $2.8 million, (28.0 percent of net sales) in the previous corresponding quarter.
Odimo attributed the decline in gross profit margin to an increase in promotional activity aimed at increasing luxury good purchases.
