FOGDOG LOSS WIDENS, PRESIDENT EXITS
NEW YORK — Fogdog Sports is continuing on its roller-coaster ride.
The e-tailer of activewear and sporting goods on Tuesday reported sharply wider net losses for the second quarter ended June 30 — despite a 700 percent run-up in sales — and said its president, Tim Joyce, is leaving the company for “personal reasons,” effective Aug. 15.
Tim Harrington, Fogdog’s chief executive officer, will assume Joyce’s duties and the title of president, which Harrington had held before Joyce joined the Redwood, Calif.-based firm last September, following a 20-year career as a Nike sales representative.
“Tim Joyce has made a significant contribution to Fogdog over the past year, but he has decided to return to his home in Portland,” Harrington said in a statement. “We wish him well.”
Shares of Fogdog fell 1/32, or 2.27 percent, to close at 1 11/32 in Nasdaq trading Wednesday on the news, which was released after the stock market’s close Tuesday. On Tuesday, the issue gave up 3/32 to close at 1 3/8.
Excluding non-cash charges, Fogdog’s net loss for the second quarter came to $12 million on sales of $5.8 million, compared with year-ago losses of $3.7 million on sales of just $731,000.
Including non-cash charges, Fogdog’s net loss in the most recently completed quarter widened to $17.6 million from a loss of $4.1 million loss in the prior-year period.
Despite the deepening deficits, Harrington stated, “These are very positive results in what was a turbulent quarter for e-commerce. We made substantial improvement on our gross profit margins as well as significant reductions in our spending.”
He continued, “These improvements in the second quarter provide a great foundation for Fogdog to implement a growth plan that focuses on controlling our operating expenses while increasing revenue at a more moderate pace.”
Harrington further noted the company has planned its expenditures to preserve cash in order to fund growth for the next 12 months. In June, Harrington told WWD Fogdog had enough cash to see it “well into the second half of 2001.”
However, the company’s cash position has changed considerably since the end of the first quarter, when it showed $61 million in cash on its balance sheet: That figure contracted to $27.3 million for the second quarter ended June 30.