E-commerce grows 18% for Vitacost.com in 2011
Web sales grew nicely for Vitacost.com Inc. in 2011, but the company also posted a bigger net loss as it spent heavily to acquire more new customers.
For the year ended Dec. 31, Vitacost.com, No. 90 in the Internet Retailer Top 500 reported:
- Sales increased 18% to $260.5 million from $220.7 million in 2010.
- Net loss was $14.8 million compared with $15.2 million.
- Spending on sales and marketing increased 21.9% to $22.8 million from $18.7 million.
- Spending on fulfillment grew year over year 28.2% to $22.3 million from $17.4 million.
- Spending on general and administrative expenses decreased 12.4% to $29.7 million from $33.9 million.
Vitacost.com spent more, specifically in the fourth quarter, to acquire new customers, says CEO Jeffrey Horowitz. Vitacost.com acquired 254,531 new customers in the fourth quarter of 2011, an increase of about 98% from 128,600 in the prior year.
"The success of our new marketing programs has exceeded our expectations, as we nearly doubled the number of new customer additions during the quarter," Horowitz says. "Our sales momentum has continued into the first quarter of 2012. We are acquiring new customers at an accelerated pace."
For the fourth quarter:
- Sales increased 13.9% to $67.4 million from $59.2 million in 2010.
- Net loss was $3.6 million compared with $3.2 million in 2010.
- Spending on sales and marketing grew 34.7% to $6.6 million from $4.9 million in Q4 2010.
- Spending on fulfillment grew year over year 32.6% to $6.1 million from $4.6 million
- Spending on general and administrative expenses decreased 39.8% to $6.5 million from $10.8 million.