EToys’ Earnings Top Expectations
SANTA MONICA, Calif. (AP) _ Online retailer eToys reported Thursday that its sales and customer base soared during the second quarter as the company expanded operations beyond toy sales, widening its losses.
EToys lost $32 million, or 27 cents per share, on sales of $13.3 million. The results compared to a loss of $3.2 million, or 4 cents per share, or sales of $600,000 in the second quarter of 1998.
The earnings beat the 28-cent-per-share loss forecast by analysts surveyed by First Call/Thomson Financial.
Customer accounts totaled 611,000 when the quarter ended Sept. 30, up more than 1,000 percent from a year ago. Repeat customer orders accounted for 42 percent of orders during the quarter.
In recent months eToys has expanded beyond toys to include sales of children’s books, movie and music videos, software and other products as it gears up to compete with other online vendors including Amazon.com and Toys R Us.com.
In July, eToys bought BabyCenter Inc., which operates a Web site that sells products for expectant parents.
Earlier this month, eToys launched a retail Web site in the United Kingdom, its first international expansion.
The quarterly results were announced after the close of regular trading. EToys shares fell $2.56 1/4, or 3.5 percent, to close at $70.62 1/2 on the Nasdaq Stock Market on Thursday. The shares rose to $72 in after-hours trading.