Gaiam’s revenue for the second quarter of 2009 increased 5.7% to $60.5 million from $57.2 million in the same quarter of 2008. Management said the clear trend in sales for the quarter was “(fitness) videos and water bottles,” and the brand is also benefiting from increased distribution through the sporting goods channel.

The cost reduction measures Gaiam has been implementing are being realized as operating expenses declined 4.9% to $2.9 million. Gaiam management continues to focus on our controlling floor space at retail.  The company expanded store-in-store presentations to 11,000 locations, which is up from 10,500 last quarter and 7,500 a year ago.
Gaiam expects to leverage the recently licensed Reebok brand to reach men and younger women. Distribution will focus on gaining a larger presence at specialty, department store and sporting goods. The main revenue impact from Reebok will begin in June of 2010.

Management said that they are seeing some upside from Dick’s “yoga place shops”  and that they have been talking to The Sports Authority about media management. In addition, they are looking at store-within-store expansion in “most of the other large sporting goods retailers” and expect most of their incremental distribution to come from the Sporting Goods Channel.

During the second quarter, which is always seasonally the weakest, Gaiam reported a net loss of $1 million, or four cents per diluted share, compared to net income of $2.5 million, or 10 cents per diluted share, for the same quarter last year. Excluding the impact of a stock gain and impairment losses, the 2008 net income would have been a net loss of $100,000.