GSI Commerce reported a breakout fourth quarter that helped narrow the company’s total loss for the year. Net revenues for Q4 increased 26% to $95.2 million compared to net revenues of $75.3 million for the Q4 2002. Net merchandise sales, which represent the retail value of all transactions through GSI’s system, increased 46% to $120.3 million in Q4. Net merchandise sales from the sporting goods category increased 54% to $52.1 million.

GSIC swung into the black in Q4, posting net income of $2.7 million, or 7 cents per share, compared to a net loss of $14.8 million, or 38 cents per share, for the fourth quarter 2002. Gross margin jumped 890 basis points to 38.2% from 29.3% in the year-ago period.

For full year 2003, net revenues increased 40.2% to $241.9 million. Net merchandise sales jumped 58.2% to $282.0 million for fiscal 2003 with net merchandise sales from the sporting goods category increasing 33% in fiscal 2003 to $128.5 million compared to $96.7 million in fiscal 2002. Sporting goods represented just 45.6% of total net merchandise sales in 2003 versus 54.2% of sales in 2002.

The net loss for the year narrowed by almost two-thirds, coming in at $12.1 million, or 30 cents per share, in 2003 from a net loss of $33.8 million, or 58 cents a share, for fiscal 2002. Gross margin also improved for the year, expanding 220 basis points to 36.0% from 33.8% for fiscal 2002.