Celebrate Express net sales up 25%, fiscal 2005 ended May 31

26 Jul '05

8 min read

In the fourth quarter of fiscal 2005 gross margin improved to 51.7 percent of net revenue, up from 49.2 percent in the fourth quarter of fiscal 2004. For fiscal 2005, gross margin was 50.8 percent, up from 48.8 percent in fiscal 2004.

The year-over-year improvements in gross margin percentage for both the most recent quarter and fiscal year are due primarily to increases in the percentage of the Company's revenue coming from proprietary products, as well as leverage of fixed design and production costs included in gross margin.

For the fourth quarter of fiscal 2005, fulfillment costs decreased to 11.7 percent of net sales, compared with 12.1 percent in the same period last year. The decrease in fulfillment costs is due primarily to a reduction of labor-related costs as a percentage of revenue.

General and administrative costs increased to 9.1 percent of net sales for the quarter just ended, up from 7.8 percent in the same quarter last year, due primarily to increased headcount in the technology and administrative areas, as well as costs related to operating as a public company.

Selling and marketing costs increased to 23.5 percent of net sales for the quarter just ended, up from 22.4 percent in the same quarter last year, remaining within the expected range of 23 percent to 25 percent of net sales. The change as a percentage of net sales is due primarily to increases in their direct marketing expenses as a percentage of revenue.

More Celebrate Express Inc News... More Fashion News - United States Of America...