Gaiam Q2 Revenue Declines9 Aug, 2011 By: Angelique Flores
For the second consecutive quarter, Gaiam Inc. posted a second-quarter (ended June 30) loss of $4.1 million, a deeper loss from $543,000 the same quarter last year.
Gaiam’s net revenue also fell 10.1%, bringing company revenue to $50.7 million from $56.4 million from the same quarter in 2010. That fall was attributed in part to low in-stock levels at retail and the Borders’ bankruptcy.
“Even though the reported results of the quarter are definitely less than desirable, we did make a lot of progress positioning the company for the difficult retail business environment and are pleased with the progress we have been making with our digital infrastructure and new sales strategies,” chairman Jirka Rysavy said.
Rysavy announced that the company’s digital subscription service, GaiamTV, will be ready to launch within a month.
Gaiam also announced returning to a direct relationship with Walmart for the entertainment section. Additionally, the company has been selected as one of two consolidation partners for Target’s entertainment section, which means representing up to 14 independent DVD suppliers. Gaiam will begin supplying packaged media to Target Oct. 1, expanding Gaiam’s relationship with Target as the sole manager of the retailer’s fitness/wellness category.
For the quarter Gaiam is No. 1 in fitness market share, according to Nielsen VideoScan. The company also is one of top 10 studios in nontheatrical packaged media market share, ranking ahead of Fox, Sony, Vivendi and Anchor Bay, said CEO Lynn Powers. Gaiam’s fitness DVD star, Jillian Michaels, also has five of top 10 videos, according to Nielsen VideoScan.
Gaiam separately announced its creation of several health apps for the iPad, iPhone and iPod Touch. They address arthritis, type 2 diabetes, fibromyalgia, high blood pressure, heart health, insomnia, back pain, menopause, weight loss and I.B.S.
“We worked with an interdisciplinary team of experts at Mayo Clinic to develop content that offers a holistic approach to dealing with everyday ailments,” said Bill Sondheim, president of Gaiam.
Each app is tailored to each specific condition and includes a Mayo Clinic specialist giving information on the condition with conventional and alternative therapy options, a Gaiam health expert leading meditative, stress-relieving activities, Gaiam's yoga instructors Rodney Yee and Colleen Saidman leading a session of yoga and stress-relieving meditation. The apps also include video playback.
Recently, Gaiam released Trudie Styler's Weight Loss Yoga app on iTunes.