Gaiam earnings up 26% with more merchandise displays

By Susanne Ault -- Video Business, 5/12/2008

MAY 12 | Gaiam reported earnings gains in its 2008 first quarter, boosted by an increasing retail footprint.

The wellness lifestyle specialist reported $2.2 million in net income for the three months ended March 31. That marks a 26% jump from what Gaiam recorded for the comparable 2007 period.

Gaiam’s revenue hiked 11.5% to $65.2 million.

During the quarter, Gaiam’s store-within-store merchandise displays expanded to more than 7,100 retail outlets. At the same time last year, Gaiam’s branded boutiques were housed inside 6,000 stores. Overall, Gaiam products, including its wellness DVDs, exercise equipment and books, are sold at 71,000 retail outlets.

Additionally, Gaiam revealed that it was recently named fitness category manager at Target. Its fitness DVDs span such subjects as yoga, Pilates and dance.

“We are very pleased with our first-quarter results, marked by sales and profit growth even after continued investment in our business,” said Lynn Power, Gaiam president. “Our 2008 initiatives are performing well, including the initial expansion of our wellness media store-within-store and securing our new role as fitness category manager for certain retail partners, including Target. Given the soft consumer spending environment, our continued success during this period, including delivering revenue above budgeted level, is a testament to the priority consumers are placing on high quality, socially responsible content and brands.”