Dear Steve: I don't understand your perspective. iTurf is performing better than many of your favorites. iTurf's revenue growth is phenomenal and costs remain in check. iTurf is focused on Generation Y (teens and young adults).
Great 2nd Quarter results:
iTurf Reports Record Second Quarter Results
NEW YORK--(BUSINESS WIRE)--August 25, 1999--iTurf (Nasdaq:TURF - news)
Net Revenues Nearly Quadruple --
Traffic Reaches Record Levels --
Unique Visitors Up Over 75% During Quarter --
Results Significantly Exceed Analysts' Expectations --
iTurf Inc. (Nasdaq:TURF - news), a leading provider of Internet community, content and commerce services for Generation Y, today announced record sales for the second quarter and twenty-six weeks ended July 31, 1999. In addition, the company reported dramatic increases in its traffic and user base.
Net revenues for the second quarter nearly quadrupled to $3.0 million from $760,000 in the second quarter of last year. Gross profit for the second quarter was $1.3 million, or 44.1% of revenues, compared to $421,000, or 55.4% of revenues, in the second quarter of last year. Selling, general and administrative expenses totaled $4.1 million, or 137.3% of revenues, compared to $445,000, or 58.6% of revenues, a year ago. The Company reported a net loss for the quarter of $1.8 million, or $0.10 per share, compared to a net loss of $24,000, or $0.00 per share, a year ago.
Net revenues for the first half of fiscal 1999 increased to $5.6 million, an increase of nearly seven times the $829,000 reported for the first half of last year. Gross profit for the first half was $2.6 million, or 46.4% of revenues, compared to $455,000, or 54.9% of revenues, in the first half of last year. Selling, general and administrative expenses totaled $5.8 million, or 104.3% of revenues, compared to $554,000, or 66.8% of revenues, a year ago. The Company reported a net loss for the twenty-six weeks of $2.0 million, or $0.13 per share, compared to a net loss of $77,000 or $0.01 per share a year ago.
Quarter over quarter, iTurf's traffic grew 64.0% to 82 million-page views in the month of July, compared to 50 million page views in April 1999. That traffic is up from 16 million page views in July 1998. The Company also reported 1,284,000 unique visitors in July, as measured by Media Metrix, compared to 731,000 unique visitors in April. Finally, cumulative commerce customers increased 36.1% during the second quarter to approximately 90,000 from approximately 66,000 as of May 1, 1999.
Commenting on the results, Stephen Kahn, President and Chief Executive Officer, stated, ''Our second quarter results demonstrate the momentum underlying our business and highlight the vibrancy of the Gen Y demographic online. During the quarter, our revenues grew nearly fourfold, reflecting sizable increases at our seven e- commerce properties and solid gains in non-commerce revenue. More importantly, our user metrics continued to experience significant growth across all key measures. Page views surpassed 80 million in July and unique visitors, as measured by Media Metrix, to the iTurf network approached 1.3 million, reflecting the success of our brand building efforts.''
''We are thrilled with the progress we are making in the execution of our aggressive growth strategies. New initiatives include our comprehensive marketing alliance with America Online as well as our partnerships with Generation Y focused companies like RocketCash and DoughNET. We're also excited about our pending acquisition of OnTap.com, a leading college hub. This transaction will expand our community and content offerings by giving us a stronghold in the college market and will add a powerful advertising complement to our robust e-commerce engine.''
In connection with its previously announced acquisition of OnTap.com, the Company has revised its expectations for fiscal 1999 and fiscal 2000 to reflect higher revenues and operating expenditures. For the second half of 1999, the Company expects the acquisition will add incremental revenues of 12%-15% above internal plan and operating expenses, excluding depreciation and amortization, of $6-7 million. In 2000, the Company expects incremental revenues of 15%-20% above internal plan and operating expenses, excluding depreciation and amortization, of $11-13 million.
Mr. Kahn concluded, ''Looking ahead, we will continue to leverage the community, content and commerce services on the iTurf network to meet the varying needs of the Gen Y market. We believe that our growth in traffic and unique visitors through the first half of 1999 underscores our strength in the race to become the premier online destination for Generation Y.''
iTurf Inc. is a leading online destination for Generation Y. Through its network of websites, iTurf provides community, content and commerce services by offering interactive magazines, proprietary content, chat rooms, posting boards, personal homepages, e-mail, and online shopping. The company's network of websites includes dELiAs.cOm, gURL.com, TSISoccer.com, contentsonline.com, discountdomain.com, droog.com, dotdotdash.com and StorybookHeirlooms.com. iTurf Inc. is a subsidiary of dELiA*s Inc. (Nasdaq:DLIA - news).
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