May 23, 2001
Sales Increase at Ashford.com
Ashford.com announced its net sales for the quarter ended March 31 increased 21% to $14.3 million compared to the same quarter last year.
According to a company press release, Ashford.com attained strong revenue while decreasing marketing spending by 64%, compared to the same quarter last year. Sales and marketing expenses declined to 37% of sales, down from 84% for the same quarter a year ago.
The company also reduced cash customer-acquisition costs by 69% from the same quarter a year ago and by 8% from the previous quarter. Repeat customer sales, as a percent of total sales, increased to 35% from 22%. Ashford.com's corporate gifts business continued to grow during the quarter, with corporate sales representing more than 15% of sales.
"We are pleased with our growth, especially the momentum we are building in our corporate gifts business," said CEO David Gow. "In our retail business, we are making significant changes to our business model that we believe will improve our results in future quarters." Ashford.com plans to lower general and administrative costs, improve marketing efficiency and narrow product assortment to focus on the most popular items. "Generally, we expect our future activities and investments are going to be more focused and more economic," says Gow.
- by Julia M. Duncan