Despite tough economic times, Dreams, Inc., announced double-digit increases in revenues for the third quarter of this year, and for the first nine months of the year.
For the quarter, revenues rose 14.4 percent to $14.4 million. For the first nine months, total revenues increased 23.3 percent to $46.6 million, versus $37.7 million reported for the same period a year ago. “We continue to experience meaningful revenue growth primarily through online retail,” said Dreams president and CEO Ross Tannenbaum. “While we are seeing some of the impact from the economic headwinds, we believe we will deliver a solid holiday quarter to complete the year.”
Despite the gains, net losses for the quarter were $1.3 million, versus $784,000 in net losses for the same quarter last year. Net losses for the nine months ended were $2.7 million, versus $2.1 million in net losses for the same period in 2007. Tannenbaum said additional expenses associated with the launching of its web syndication services, FansEdge store model, and the move into a substantially larger facility were the reasons for the losses.
For the first nine months of the year, the company’s online retail sales were up 39.4 percent. At the company’s Field of Dreams and FansEdge retail locations, same-store sales are unchanged from a year ago despite the fact that the company’s Las Vegas store and 365 Live autograph business have generated $1.5 million less revenue than a year ago. For the quarter, retail revenues increased nearly 20 percent. “Even with consumer spending down across all retail sectors, we continue to see increased sales activity for our online retail,” Tannenbaum said.
The company opened five FansEdge retail stores in the Chicago market this year. Tannenbaum said, to date, the stores “are producing solid results.”
The company’s manufacturing and distribution revenues increased 28 percent to $12.8 million in the first nine months of the year and have recorded a profit of $776,000.