Gaiam, Inc. revenue for the third quarter decreased 2.8% to $72.3 million. Management said the decline was said to be due to the company's focus on improving operating income by reducing television advertising and catalog circulation, partially offset by sales growth in the Business and Solar segments.
Gross margin dipped 220 basis points to 45.9% of net revenue for the third quarter from 48.1% of net revenue in the comparable quarter last year. An increase in mix of Solar revenues impacted gross margin year-over-year. Excluding the company’s Solar segment, gross profit margin for the third quarter of 2010 was 56.5% of net revenue.
Income from operations during the third quarter of 2010 improved 13.5% to $1.1 million from $1.0 million during the same quarter last year. Net income was $900,000, or 4 cents per share, during the third quarter of 2010, compared to $400,000, or 2 cents per share, during the comp quarter last year.
In terms of growth by segment, Jirka Rysavy, Gaiam chairman said the company increased fitness market share to 42% from 34%, and the DVD Fitness category as a whole increased 10.5% compared to the same period of last year.
Based to retail point-of-sale data compiled by SportScanInfo, Garmin market share in Yoga Accessories jumped 620 basis points to 21.8% for the YTD period.
