Online jewelry retailer Bidz.com’s first quarter web sales climb 38.5%

Online jewelry auctioneer Bidz.com Inc. reported net sales of $61.9 million for the first quarter of 2008, a 38.5% increase compared with $44.7 million reported in the first quarter of 2007. The increase, which exceeded company guidance, was attributed to the continued demand for the company’s jewelry products, higher customer traffic, better participation in its auction and bigger average orders.

Bidz.com’s pre-tax income for Q1 of 2008 was $7.8 million and exceeded its revised guidance of $6.5 million to $7.3 million by 7%. Pre-tax income increased by about 123% year-over-year to $7.8 million, up by $4.3 million from $3.5 million in the same period last year.

The first quarter produced growth across several metrics for Bidz.com, No. 74 in the . The following list shows Q1 data for 2008, followed by 2007 and the rate of increase:

• Number of new buyers: 83,179; 58,056; 43.3%
• Average gross selling price per order: $182; $154; 18.2%
• Average orders per day: 3,734; 3,317; 12.6%
• Average items sold per day: 12,186; 9,482; 28.5%
• Acquisition cost per new buyer: $50; $45; 11.1%
• Gross margin per average order: $53; $38; 39.5%

“Our success in this environment is a testament to the broad appeal of our business model, which features jewelry offered at prices significantly below other jewelry retailers,” says David Zinberg, president and CEO.
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