News out
Synergy Brands Sales for ItsBeautyBuys.com On-line Store Exceeded $260,000 for Its First FullOperating Quarter
July 6, 1999 11:03 AM
SYOSSET, NY--(BUSINESS WIRE)--July 6, 1999--
BeautyBuys.com Establishes Itself As One Of The Online Market Leaders In Its Beauty Sector Categories
Synergy Brands, Inc. SYBR online beauty care store, BeautyBuys.com, Inc., announced today that its gross sales for the quarter ended June 30, 1999 were in excess of $260,000 with gross margins topping 27%.
"This last quarter performance establishes BeautyBuys.com as one of the online market leaders in its beauty sector categories. Having started from a zero base and with very limited advertising we still received a substantial number of page views and unique visitors. We are finding that visitors have started purchasing and we are encouraged by the trends that we have seen over the past few months," stated Henry Platek, President of Synergy Brands, Inc. "It is our view that our sales at BeautyBuys.com will grow at an exponential rate as a result of a major product expansion in September of this year, a substantial increase in partner relationships with key online media portals, and the anticipated positive impact from our off-line advertising campaigns."
Since it first opened its online store on February 26, 1999, BeautyBuys.com has seen its sales grow dramatically. More than 75% of gross sales for the quarter ended June 30, 1999 occurred in the last two months. The company is focusing all of its efforts on maintaining its on-line sales growth in the third quarter and increasing the fourth quarter to record levels.
The company also noted that its gross profits have been substantially higher than those reported by competing online stores. Drugstore.com has reported sales of approximately $652,000 with negative gross profits of $20,000 for their first quarter; while Perfumania.com reported sales of approximately $162,000 with gross profits of approximately $51,000 in its first quarter. BeautyBuys.com's gross profits exceeded $70,000 on sales of approximately $260,000.
About BeautyBuys.com
The BeautyBuys.com online store offers a popular selection of national brand health and beauty care products that includes designer fragrances, salon hair care items, cosmetics, skin care, and a selection of the best selling over-the-counter health and personal care consumer items. Pricing on the eautyBuys.com web site is designed to provide consumers with substantial discounts off conventional store prices. The company has established strategic relationships with Lycos LCOS , Yahoo!, MSN, NBCi, Warner Bros Online, and The Women.com Network. Furthermore, the company expects to relaunch its web site in September 1999 to include a larger selection of nutritional, health care, personal care, skin care and cosmetic items.
All products and brand names mentioned herein are trademarks of their respective owners.
This news release includes forward-looking statements, which are based on assumptions concerning production and sales, operating expenses and other costs that the management of Synergy Brands and its subsidiaries believe are reasonable, based on currently available information. However, management's assumptions and the company's future performance are both subject to a wide range of business risks and there is no assurance these goals can or will be met.
Note: figures presented in the release related to Drugstore.com and Perfumania.com were obtained from the S-1 filings each company has made with the SEC.
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