EToys widens loss to 27 cents
Company spends heavily to boost Web site
By Deborah Adamson, CBS MarketWatch
Last Update: 5:11 PM ET Oct 28, 1999 Also: NewsWatch
SANTA MONICA, Calif. (CBS.MW) -- Online retailer EToys on Thursday said it lost 27 cents a share in the second quarter, excluding special charges, as the company continued to spend heavily to develop its brand, Web site and systems.
The Santa Monica, Calif.-based Internet toystore (ETYS: news, msgs) lost $32 million before certain noncash charges, compared with a loss of $3.2 million, or 4 cents, a year ago. Analysts polled by First Call expected a loss of 28 cents.
Including the charges, EToys lost $44.9 million, or 38 cents a share. A year ago, the company's net loss was $3.4 million, or 4 cents a share.
Revenue was $13.3 million vs. $608,000.
EToys increased the number of customer accounts by 30 percent to 611,000 in the period from the first quarter. Repeat orders made up 42 percent of all orders placed in the second quarter.
With the jump in revenue, the company's operating expenses also ballooned to $49.4 million in the second quarter from $3.8 million a year before. The biggest expense was marketing and sales, which surged to $20 million from $2.4 million.
Shares of EToys dropped by 2 9/16 to 70 5/8 in Thursday trading. The quarterly report came out after the market's close. |
