Gaiam, Inc. reported that total sales for the fourth quarter ended Dec. 31 slipped 4.9% to $83.3 million from $87.4 million in the prior-year quarter as the company cut back on direct response television advertising and catalog circulation during the period. Earnings for the quarter were $4.2 million, or 18 cents per share, compared to $4.0 million, or 17 cents per share, during the same quarter last year.
Gross margins decreased to 49.8% of net revenue, during the fourth quarter from 52.3% of net revenue, during the comparable quarter the prior year. Management said the change in gross margin resulted primarily from decreased revenues from the high gross margin direct response marketing business and increased revenues from the lower gross margin Solar segment. Excluding the Solar segment, gross profit, as a percentage of net revenue, was 55.9% during the fourth quarter of 2010.
Income from operations during the quarter set a record for the company, improving to $6.8 million from $6.7 million in Q4 2009. Net income was $4.2 million, or 18 cents per share, in Q4, compared to $4.0 million, or 17 cents per share, in the prior-year period.
In terms of growth by segment, the company’s Fitness segment was up 3.3% for the quarter.
