eToys (Nasdaq: ETYS) lost a penny less than analysts predicted in the second quarter.
After market close Thursday, the online retailer of children's products reported a fiscal second quarter net loss of $32.1 million, or 27 cents per share, excluding writedowns and charges related stock compensation. First Call's survey of nine analysts predicted a loss of 28 cents per share for the quarter ended Sept. 30.
Second quarter revenues increased to $13.3 million, a 67 percent gain from the fiscal first quarter. Repeat customers generated 42 percent of eToys orders in the quarter. Total customer accounts increased to 611,000 at the end of September from 467,000 in June.
Other e-commerce companies such as Amazon.com and eBay have recently announced they would increase spending, and eToys is no exception. The company will increase spending to boost its brand, extend technology and expand geographically, said Toby Lenk, president and CEO.
"These investments will allow us to aggressively pursue our vision of building a dominant kids' brand for the 21st century," Lenk said.
eToys recently switched to an Oracle software platform, integrated order fulfillment systems, opened a Utah distribution center, signed a marketing agreement with America Online, and rolled out a British website, the first eToys site targeted for a non-U.S. market.
Shares of eToys fell 2 9/16 to 70 5/8 in Thursday's regular trading prior to the quarterly report. Among 10 analysts surveyed by Zack's Investment Research, five have the equivalent of "moderate buy" ratings on eToys, four maintain "hold" advisories on the stock, and one recommends it with a "strong buy" rating.>