The company’s revenues were down for both the quarter and the year, once again this is due to the tough economic year known as 2009. Furthermore, it doesn’t help that Bidz deals exclusively with jewelry, a sector which fares worse than most in such an economic environment.
Although the company faced declining revenues it was able to maintain, be it by a small margin, profitability. Once again this is in accordance with the theme of earnings reports this year.
Besides the usual numbers and comments a few stuck out that will be worth monitoring. The company plans to continue the repurchase of shares, something positive for investors to sink their teeth into. The company also launched a deal with Aramex to offer effective shipping services to customers in 15 Middle East countries. They also have zero balance on a $25M line of credit. Lastly the company is focusing on bringing in more branded products.
The Company also announced last month the successful launch of Modnique, its exclusive private sale shopping site for members-only, offering authentic premium brand name merchandise. Modnique offers its members exclusive access to 24-72 hour sales events on designer apparel, accessories, shoes, houseware and much more at price points up to 85% off of retail.
Management offered some guidance for 2010 in the form of revenues being at about $26-$28 million, around the same as they were for the 4th quarter.
Bidz was hit hard by the economic recession of 2009 and they will need a strong recovery in order to return to top-line growth. The company will rely on its interactive, and for some, entertaining format in which sales are completed paired with its compelling value.
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