Celebrate Express net sales up 25%, fiscal 2005 ended May 31
26 Jul '05
8 min read
For the fiscal year ended May 31, 2005, fulfillment costs decreased to 11.6 percent of net sales compared with 12.8 percent during fiscal 2004. 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 9.4 percent in fiscal 2005, up from 8.9 percent in fiscal 2004, primarily due to increased headcount in the technology and administrative areas and costs related to operating as a public company.
Selling and marketing costs decreased to 24.3 percent of net sales in the fiscal year just ended, compared with 24.7 percent in fiscal 2004. This decrease as a percentage of net sales is due primarily to leverage of personnel and other fixed costs associated with their internal corporate marketing and creative departments.
Mr. Jewell added, "Looking forward to fiscal 2006, they will continue to focus on providing their customers with the most complete and convenient solutions for their celebration needs. As they consider the growing needs of their customers, they plan to expand their selection to include additional celebration brands to further leverage their database and their infrastructure." The Company has recently made a strategic decision to re-focus its Storybook Heirlooms brand going forward with less emphasis on sportswear and everyday clothing and more emphasis on special occasion girls' apparel. The Company intends to continue to evaluate its Storybook Heirlooms' merchandising and creative efforts with the objective of strengthening the financial performance of the brand. "They are excited about concentrating their efforts on the special occasion, celebration focused apparel market, which was the original foundation of the Storybook Heirlooms brand," said Mr. Jewell. "Their goal is to strengthen this brand's point of difference in the marketplace." As a result of this strategic change, the Company has severed its employment relationship with its chief marketing and merchandising officer, Lori Liddle, as well as two other personnel in merchandising and creative, effective July 22, 2005. Mr. Jewell continued, "Lori Liddle has made a valuable contribution to Celebrate Express over the past two years. They wish her all the best in her future endeavors."
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