Direct Sales Strain Dover's Q3 Profits
Equestrian retailer Dover Saddlery saw its revenue rise but profits dip in the third quarter, which ended Sept. 30.
The Littleton-based company said revenue was up 4.4 percent, or $900,000, compared to the same period last year, to $20.4 million. Store revenue was up 20 percent to $9.8 million, which the company said was mainly because of new store openings. In September, Dover opened its first Minnesota store, bringing the total number of stores nationwide to 16.
Same-store revenue was also up over 2011, by 6.6 percent.
The company posted a third-quarter profit of $170,000, or 3 cents per share. That was down from $332,000, or 6 cents per share last year.
The story was similar for the company's year-to-date financials. For the first nine months of the year, total revenue was up 4.5 percent to $59.6 million. Retail store revenue grew 21.3 percent to $26 million, which Dover attributed to new store openings and an increase in same-store sales of 7.2 percent.
Profits dipped to $695,000 from nearly $1.1 million last year.
President and CEO Stephen L. Day said that, although store sales continued to grow, soft direct sales affected the bottom line.
Day said the decline in online sales is being addressed by the company through "better promotional offers, digital catalogs, and new features on our Website to enhance the online shopping experience."
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