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E-commerce sales fall almost 30% at Design Within Reach
The economy continues to hammer revenue at Design Within Reach Inc.
Web sales were down for the third straight quarter, falling 29.7% to $5.2 million in Q3 2008 from $7.4 million in the prior year quarter. The Internet accounted for about 12.3% of sales in Q3 2008 vs. 15.2% in Q3 2007.
Store, or studio, sales also declined, by 10% or $3.3 million, from $32.1 million in Q3 2007 to $28.8 million in the third quarter of 2008. Overall sales were down 13.7%, or $6.7 million, for the third quarter ended Sept. 27, 2008, to $42.3 million from $49 million in the same quarter of 2007.
Design Within Reach is a multi-channel retailer of modern design furnishings and accessories. The company, No. 263 in the Internet Retailer Top 500 Guide, depends on affluent consumers for its business and the company cites the stagnant housing market and the mortgage crisis as key reasons for sagging sales.
Design Within Reach reported an overall loss for Q3 2008 of $5.6 million compared with net income of $2.4 million in the prior year quarter.
Through the first nine months of fiscal 2008, web sales decreased about $4 million, or 18.3%, from $21.8 million in the first three quarters of 2007 to $17.8 million. Net sales through nine months of fiscal 2008 declined 3.8%, or $5.5 million, from $141.9 million in the first nine months of 2007 to $136.5 million.
Source: Internet Retailer










