Despite the tough economic conditions, Dreams Inc. reported revenues for 2008 increased 10.3 percent to a record $82 million. However, lower-than-projected revenues in the fourth quarter were cited as the key contributors to a net loss of $1.6 million for the year, the company’s first annual loss in four years.
CEO Ross Tannenbaum said the company has already taken steps to improve its profitability this year.
“We have taken a more conservative approach by slashing several millions of dollars in overhead costs with the restructuring of many of our store and warehouse rents, a 22 percent reduction in our work force, management and employee wage reductions and a reduction in forecasted capital expenditures,” he said. “Overall, 2009 will be a year of consolidation.”
Tannenbaum said revenues from the company’s Internet division increased by nearly 20 percent from the previous year, while its retail division’s revenues were up 15.3 percent. Wholesales revenues were virtually unchanged from 2007.