« Loose Cushion Cut Diamond: What Is It? | Main | Burmese Rubies? Make Sure They Are. »
Odimo.com In Financial trouble
Odimo.com, one of the Internet's first diamond and jewelry websites is in deep financial trouble.
Online diamond retailer Odimo Incorporated alerted investors that the company requires additional financing to "continue its operations, meet its operational goals, and to pursue its long term strategy."
Odimo's fiscal year ended December 31, 2005, and the company released its fourth-quarter and year-end results after the markets closed on March 30. Odimo owns www.diamond.com, www.ashford.com, and www.worldofwatches.com.
In its financial statement, Odimo states: "The company is currently implementing strategies that include: (i) reducing costs, (ii) seeking equity and debt financing, and (iii) exploring the sale of the company or certain assets. There is no assurance that the company will be able to successfully implement any of these strategies. The financial statements do not include any adjustments that might result from the outcome of this uncertainty."
During the year, and as part of cost-cutting measures, Odimo and SDG Marketing agreed to terminate their agreement, to which Odimo returned $3.7 million (and $700,000) in diamond inventories to satisfy payables.
Losses for the fourth-quarter at Odimo grew to $13.9 million from $1.7 million one year earlier. Sales fell 14 percent to $18.5 million.
For the fiscal year 2005, Odimo sales were flat at $52 million, and orders decreased during the year by almost 3 percent to 151,700. The average order value however increased 3.4 percent to $387. Gross profit was 24 percent of net sales, or $12.5 million, down from $15.1 million in 2004.
Loss from operations was $23.4 million, up from $12.5 million in 2004, inclusive of a $9.8 million non-cash charge to record the impairment of goodwill.
Comments
We manufacture diamond jewelry in Gold, Silver and Platinum from India. I am looking for good wholesalers, tv networks, dotcom, catalog companies to whom we can sell. Is there anyway I could be helped ?
Waiting for a favorable reply.
Thanks and best regards,
Neetin Lopes
Posted by: Neetin Lopes on June 6, 2008 7:11 AM