Buy.com stays strong in retail market
- 01 August, 2000 12:37
Buy.com has announced stronger second quarter financial results, but profitability remains elusive.
The e-tailing giant reported Q2 revenues of $US193.2 million, up 49.4 per cent compared to the same quarter last year. The growth was driven by a 195 per cent increase in new customer accounts, while repeat orders accounted for 62 per cent of sales.
However, net losses came in at $33.6 million, or 26 cents per share.
The results, while slightly down on analysts expectations, represent a sizable margin improvement; up 1.8 per cent overall on Q1 results to 6.1 per cent. Gross profit improved by 33 per cent to $11.8 million.
Buy.com welcomed the announcement of second quarter financial results, although the company refused to comment on the impact they would have on its Australian operations.
Buy.com (Aust) is a joint venture between buy.com Inc and eVentures Holdings, itself a joint venture between eparters - the e-commerce venture capital arm of News Corporation - and SOFTBANK.
A spokesperson for buy.com (Aust) said that the significant increase in gross margin and gross profit, as well as the continued strong growth in customer accounts, all pointed to a clear path to profitability and demonstrated the success of the US operations.
"In the short time since buy.com was launched in Australia in May, the results have been similarly very pleasing and importantly, above expectation," he said.