NEW YORK — Major revenue gains propelled Alloy Inc. to profit from loss in the first quarter of fiscal 2002.
For the three months ended May 30, the New York-based Generation Y direct merchant reported a swing to net income of $2.5 million, or 6 cents a diluted share. That compares with a net loss of $10.3 million, or 49 cents, last year. Earnings per share were within the company’s own guidance and beat Wall Street expectations by a penny.
Soaring sales growth fueled the performance as total revenues spiked 75.6 percent to $50.4 million from $28.2 million a year ago. Of that, merchandise revenues jumped 30.9 percent to $31.1 million from $23.7 million last year, while sponsorship and other revenues kicked in a more than fourfold increase to $19.4 million from $4.5 million a year ago.
Sales rose on the company’s larger marketing database and the inclusion of merchandise revenues from the acquisition of Dan’s Competition. Sponsorship revenues rode the coattails of a broader client base, bigger marketing programs and a wider range of media services made possible by internal development and strategic acquisitions.
“We are pleased with our fiscal 2002 first-quarter performance across the board,” said chief executive officer Matt Diamond in a statement. “All areas of the business executed well, enabling Alloy to comfortably meet the financial guidance we established in March, with earnings at the upper end of the range. We continue to move forward with our advertising sales force integration program, and we’ve strengthened our sales management in our West Coast sales office. Our outstanding financial position allows us to take advantage of opportunities in the youth market on our terms and at our discretion.””