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Etoys: Did you buy from them?

D

Dameon

Banned
"EToys will miss estimates
Online toy retailer blames slower economy, presidential impasse
December 15, 2000: 7:04 p.m. ET


NEW YORK (CNNfn) - Online toy retailer eToys Friday said its fiscal third-quarter operating loss will be higher than Wall Street had expected, citing sluggish holiday sales and other factors.

The company also said it will lay off a portion of its work force in an effort to reduce operating costs and has hired an investment banking firm to explore strategic alternatives, which could include a merger, asset sale or other restructuring.

After the close of trading, the Los Angeles-based company said it expects to post a loss, excluding one-time charges, that is between 55 percent and 65 percent of revenue, compared with its previous estimate of a loss between 22 percent and 28 percent of revenue.

The company said it now expects net sales to be between $120 million and $130 million, rather than the $210 million to $240 million it previously estimated.

eToys also said it now expects to finish the quarter with a cash balance of between $50 million and $60 million, compared with its previous expectations that it would finish the quarter with between $100 million and $120 million in cash. "


Prediction: Etoys will not be around for next Christmas
 
awhile ago I bought an 85cent brush with free shipping from them so I could get the Snap.com free $20 with my webcertificate...aaahhhh, the gold old days of real hot deals!
 
They have good service, a little high on pricing (except for that current sale), and they didn't bleed out with over-couponing, so I wonder what did them in? Now that I think about it, I didn't order a lot from them because of pricing was not exceptional, and their shipping fees were very high.
 
Well here's something odd, I thought I remembered that etoys.com had filed a lawsuit against a performance group known as/found at etoy.com? Could be wrong, but when I tried to go to etoy.com to see what was there, I was connected to zanybrainy.com.
 
We just bought Chuck the Talking Firetruck there for my nephew. Good prices compared to locally advertised ones, and shipping was prompt and well done. I hope they don't go under. We bought from them last year, too, for Christmas. B&M toy stores are just too overwhelming so it would be disappointing if the online ones disappeared.
 
What did them in was their phenomenal burn rate. They actually built the huge high rise building the company's headquartered in. I've talked to a few people who work there, and the overall consensus is the big bosses were throwing money all over the place, paying exorbitant amounts of money for consulting services and ad campaigns, not to mention office parties and perks for executives. If you're running a company like Sears that's not such a bad thing, but eToys had a slim profit margin to begin with. Overhead was five times profit, as the CNN story said.
 
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