USA: Geerlings & Wade Inc. Reports Second Quarter Results
Geerlings & Wade, Inc. (Nasdaq: GEER), the nation's largest direct marketer and Internet retailer of premium wines and wine-related products to consumers, today reported financial results for the second quarter of 2000.Net sales for the second quarter ended June 30, 2000 were $8.9 million, an increase of $.33 million, or 3.8%, over net sales of $8.6 million for the comparable quarter in 1999. Net loss for the second quarter ended June 30, 2000 was $357,000, or $0.09 per share, compared to net income of $217,000, or $0.06 per share, for the second quarter of 1999.In the second quarter, Geerlings & Wade had e-commerce sales of $1,531,000, an increase of 295% over e-commerce sales of $388,000 during the second quarter of 1999. Sales from acquisition mailings in the second quarter of 2000 increased $390,000 as compared to second quarter 1999 due to improved response rates to mailings and because of the timing of certain mailings. Certain expenses increased during the second quarter of 2000 over 1999 causing the $731,000 decrease in earnings. The two most significant increases included a charge of $305,000 related to certain severance payments and increased delivery costs of $231,000 related to changing delivery companies in the fourth quarter of 1999.David Pearce, President of Geerlings & Wade, Inc., commented, "I am pleased with our second quarter results. Sales increased, and, had it not been for severance payments and certain legal expenses, we would have been profitable for the quarter. We intend to continue this positive trend by increasing sales over 1999 and making a profit in the second half of 2000. Internet sales continue to grow rapidly representing 17% of overall sales during this past quarter. We continue to encourage existing customers to migrate to the online channel. Approximately 21% of our new customers were acquired through the online channel,
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