During the second quarter, GSI Commerce Inc. continued its expansion outside the realms of sporting goods, signing agreements with both GNC and Zale Corporation. Despite the growth into other markets and increases in revenues, the company yet again failed to turn a profit for the quarter.
Net revenues increased 42% to $91.7 million in Q2 from $64.7 million last year. Service fee revenues increased 43% to $16.5 million, while net revenues from sporting goods sales grew 25% to $41.9 million for the period or 45.7% of net revenues. Total merchandise sales, which includes sales of all products through the GSIC platform, increased 53% to $136.8 million for Q2, while merchandise sales from the sporting goods category increased 36% to $51.4 million or 38% of total sales, compared to $37.9 million or 42.3% of sales in the year-ago quarter.
Gross margin was 37.8%, a decrease of 100 basis points compared to 38.8% in 2004. The decline in gross margin was largely driven by greater product sales in the other category, which carry a lower gross margin than product sales of sporting goods. Net loss was $2.8 million or 7 cents per share for the second quarter of fiscal 2005, compared to a net loss of $3.1 million or 8 cents per share in the same period last year.
>>> Think this thing would make it to the public market these days???
