GSI Commerce increased second quarter net revenues 28% to $64.7 million compared to net revenues of $50.3 million in the year-ago period. Gross margin improved 500 basis points to 38.8% of sales versus 33.8% in Q2 last year.
GSIC narrowed its net loss for the period to $3.1 million, or 8 cents per share, from a net loss of $3.8 million, or 10 cents per diluted share, in the year-ago period.
Net merchandise sales, which account for all sales run through the GSIC system and include sales where the company only earns a transaction or service fee, were $89.6 million in Q2, a 63% increase compared to net merchandise sales of $54.8 million in Q2 2003.
Net sporting goods revenues were up 24.4% to $33.6 million for the quarter, while net merchandise sales, or NMS, from the category increased 40.3% $37.9 million in the period.
Sporting goods revenue represented 51.9% of revenue in the quarter versus 53.3% of total revenues in Q2 last year, a decline of 140 basis points. Sporting goods net merchandise sales were down to 42.3% of total NMS for the period, a 700 basis point decline from the 49.3% share of NMS in Q2 last year.
OTHER KEY METRICS:
- Launched Polo Ralph Lauren and Timberland direct sales sites during Q2.
- Signed a multi-year extension of its direct sales contract with Reebok International Ltd.
- Year-on-year inventory up 8.3% to $22.0 million.
