Bidz.com’s net revenues for the third quarter of 2011 totaled $20.3 million, a decrease of 7.1 percent from last year. The company cited a lower demand for discretionary items, specifically jewelry, for the decline in revenues.
“Given the current economic conditions and decreased discretionary spending, we believe that we will continue to face challenges for the remainder of the year and into 2012,” said Leon Kuperman, the company’s president and chief technology officer, in a statement. “Nevertheless, during the quarter, we saw a slight sequential improvement in our gross margins as we were able to move some of our product at higher average price points than in prior quarters.”
Other highlights from Bidz’s financial statement:
- Net loss: $1.5 million, compared to a net loss of $614,000 in 2010
- Gross Profit: $4.8 million, down 14 percent
- Net revenues of Modnique.com, the company’s boutique website: up 162 percent
- Average selling price per order: $155, down 20.1 percent
- Number of new buyers: 40,224, up 16.3 percent
The company also recorded an income tax benefit of $1.1 million during the third quarter 2011, by applying current losses to 2009 income; this is compared with an income tax benefit of $421,000 in the prior year, with an effective tax rate of 44 percent and 40.7 percent, respectively.