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My Vintage's net loss increased by immaterial amount
23
Dec '09
My Vintage Baby, Inc. a public children's apparel company, announced its financial results for the nine months ended September 30, 2009.

Third Quarter Highlights: Gross sales decreased 46.2% from $1,127,355 to $521,086 from the nine months ended September 30, 2008 vs. September 30, 2009, and related gross profit decreased from $437,711 to $244,937 for the same periods. Gross profit as a percent of net sales increased from 37.8% to 45.7% year over year. Operating and overhead expenses decreased 22.5% from $827,380 to $640,992 from 2008 to 2009 for the nine months reported. The Company's net loss increased by an immaterial amount.

“We made a significant change to our business model during the fall by testing a Direct Sales Representative (DSR) organization to sell via in-home trunk shows. We launched the national expansion on December 1, 2009 with 91 sales representatives and the hiring of a national sales director, with extensive experience in this type of sales, to expand and manage the DSR's and grow top line revenue,” commented CFO Jeff Welsh.

“As a result of our move to direct selling, we no longer needed a showroom and were able to negotiate an early termination from the Dallas Market Center with resultant savings for the twenty-four months after February 2010 of $108,552. In addition, we were able to reduce our McKinney office/warehouse one year lease starting February 2010 by $150 per month.

"The Direct Sales model has also caused our current inventories and liabilities to increase as we hold inventories longer before recognizing revenue. The representative's trunk shows are held and sales generated throughout the season versus the retail model where shipments and revenue primarily occurred at one time early in the season,” stated Jeff Welsh.

Gross sales are estimated at $915,000 for the year ending December 31, 2009. The net loss for the 2009 fiscal year is expected to remain unchanged from the third quarter 2009 net loss of approximately $396,056. This is a 33.4% decrease from 2008 fiscal year. The improvement in net loss is primarily due to increasing gross profits. The new business model we expect will contribute to additional growth of profit into the 2010 year.

My Vintage Baby Inc

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