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Gaiam Operating Income Up in Q3

9 Nov, 2010 By: Angelique Flores

Fitness and lifestyle company Gaiam saw an increase in operating income in the third quarter, as the company’s DVD market share also increased.

Operating income during the third quarter (ended Sept. 30) rose 13.5% to $1.1 million, from $1 million during the same quarter last year. Net revenue for the quarter dropped 2.8% to $72.3 million, from $74.4 million the same quarter last year.

The decrease was primarily due to the company’s focus on improving operating income by reducing television advertising and catalog circulation, partially offset by sales growth in the business and solar segments.

Gaiam’s nontheatrical DVD category is at 9%, up from last year’s 5%. The company’s fitness market share is up to 42% from last year’s 35%. The DVD fitness category is up 10.5% from last year’s same period, according to Nielsen VideoScan data.

Company executives said they plan to boost their digital efforts, which includes streaming. During the quarter, the company soft launched Gaiam TV and redesigned their website gaiam.com. The broader launch of Gaiam TV will include applications for mobile devices scheduled to arrive in the spring 2011, according to company chairman Jirka Rysavy.

“We plan to use retail to introduce customers to our digital platforms,” said CEO Lynn Powers.

Gaiam executives expect the company’s upcoming fourth quarter to be the best ever in terms of operating income.

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