Odimo Net Sales Up 22.4%, But Still in The Red

Luxury goods websites owner Odimo reported net sales of $12.8 million for the first quarter of the year at its three web sites – Diamond.com, WorldOfWatches.com and Ashford.com. Net loss before dividends was $2.7 million.

While Odimo’s sales increased 22.4 percent from $10.4 million, it is still losing money, however the quarterly loss decreased by almost two-thirds from $6.4 million for the first quarter of 2004.

“We will continue to focus on our growth strategy of attracting new customers, expanding our diamond and diamond jewelry sales, and pursuing operating efficiencies,” said CEO Alan Lipton.

Odimo closed its initial public offering in February, raising about $22.4 million from a common stock sale and another $1.4 million from the exercise of warrants. The company's share price dropped from a $9.40 high after the IPO to $5.05 when trading closed Friday.

Inventories at the end of the quarter decreased by $1.3 million to $13.0 million.

Marketing expenses increased 54.4 percent to $1.7 million, reflecting, the company says, its focus on customer acquisition, increasing the rate of repeat sales through e-mail and retention marketing programs, and increases in online advertising costs.