Gaiam grows revenue, narrows loss

LOUISVILLE — Buoyed by strong sales of its yoga, fitness and wellness products at such retailers as Kohl’s and Target, Louisville-based Gaiam Inc. (Nasdaq: GAIA) on Thursday reported net revenue up 27 percent from the same quarter a year ago.

“Our second quarter results included the successful April launch of our exclusive Kohl’s apparel line, which continues to exceed our expectations,” said Gaiam chief executive Lynn Powers in a media statement. “Excluding this new revenue stream along with sales from our largest customer, revenue from our top 25 customers increased 30 percent, demonstrating the strength of our brands beyond just apparel. Revenue from the Gaiam-branded business excluding our non-wholly owned subsidiaries was up 37 percent in the quarter.

The children’s yoga line Gaiam launched in Target stores in July also is selling well, Powers said, and “strong demand for our wellness line is expected to add between 500 and 1,000 new doors in the second half of the year, including Vitamin Shoppe. With our largest account back in stock, new line launches and continued strong sell through at our retail accounts, we are well-positioned for our fall/holiday season.”

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Net revenue in the second quarter of 2015 increased 27 percent to $41.1 million compared with $32.5 million in the same quarter a year ago. Gross profit in the second quarter increased 18 percent to $18.2 million compared with $15.5 million in the second quarter of 2014. Meanwhile, operating expenses decreased 2 percent to $18.2 million, and second-quarter income from operations was $23,000 compared with a loss from operations of $3.2 million a year ago.

Net loss for the second quarter was $1.1 million or 5 cents per share, compared with a net loss of $2.4 million or 10 cents per share in the same period a year ago. The second quarter this year included approximately $1.1 million in costs associated with litigation from the sale of GVE Newco to Cinedigm in 2013.

Gaiam’s stock closed up 8 cents at $6.45 a share on Thursday.

As of June 30, cash totaled $18.4 million compared with $15.8 million on Dec. 31. The company continues to carry no debt.

“We are pleased with the 27 percent internal revenue growth for the quarter and the year-to-date $10.4 million improvement in cash flow from operations,” said Jirka Rysavy, a 2013 Boulder County Business Hall of Fame inductee who founded Gaiam in 1988 and has been its chairman ever since. “In addition, Gaiam TV reached the breakeven point before the end of the quarter and we expect the third quarter to be profitable.”

Gaiam TV is a global digital video streaming service that provides curated media content to  subscribers in more than 100 countries.