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Mcglaughlin Lost $3 Million 900 Thousand In The First Quarter

2011/5/25 11:29:00 62

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Mcglaughlin First Quarter Net Loss Promotion

Mcglaughlin

(NASDAQ:MCOX) yesterday's first quarter 2011 earnings report was not satisfactory.

Business income

48 million 100 thousand US dollars, down 2.4% compared to the same period last year.

Net loss of $3 million 900 thousand, an increase of 153% over the same period last year.

As for the reasons for the decline in business performance, Mcglaughlin explained that with the development of the Internet, the buying habits of call center business were pferred from the call center to the Internet, and the sales decline was due to the decrease in the number of self operated stores from the average of 175 in the first quarter of last year to the average of 119 in the first quarter of 2011.

As for the further expansion of losses, Mcglaughlin CEO Gu Bei Chun, an interview with reporters, said that in the first quarter of this year, advertising investment and products on the Internet had been increased.

Promotion efforts

That leads to rising costs.

"For the clothing industry and the online shopping industry, the first quarter will be the lowest in a year, because the clothing is seasonal, and the first quarter coincides with the turn of winter and spring.

We also suffered losses during the same period last year.

In the future, we will continue to invest more in the Internet.

At present, we have $one hundred million in reserves and will use these funds to expand on the Internet. "

Gu Beichun revealed.

Mcglaughlin's growth in the first quarter business was only Internet sales, and the net business income of the Internet business was $26 million 300 thousand, an increase of 25.9% over the same period last year.

The growth is mainly due to the online advertising and marketing strategy, which has attracted a large number of active customers. This part of the growth offset the loss of order delivery rate due to the shortage of staff during the Spring Festival.

However, because of the strengthening of Internet marketing, its cost is increasing.

The cost of product sales in the first quarter was $30 million 700 thousand, up 8% year-on-year.

For Mcglaughlin, who had previously been lawsuits in the United States, he said: "at present, the US court has designated the main plaintiff and the principal plaintiff lawyer. We will reply within 60 days after the plaintiff has amended and submitted the complaint.

Mcglaughlin company will actively respond.