Third quarter web sales increase 38% at Dreams Inc.

Sticking to its niche helped Dreams Inc., which operates FansEdge.com and other niche sporting gear and memorabilia e-commerce sites, grow its third quarter web sales in a tough retail environment.

For the quarter Dreams, No. 216 in the , increased web sales by 37.5% to $7.7 million from $5.6 million in Q3 of the previous year. Overall Dreams posted a net loss of $1.4 million on sales of $23 million vs. a net loss of $784,000 on revenue of $16.5 million in Q3 of 2007. The web accounted for 33% of sales in the third quarter.

Web sales also are up for the first three quarters of the year, rising by 39.4% to $23 million from $16.5 million in the previous year. For the first three quarters, Dreams posted a net loss of $2.7 million on sales of $46.6 million vs. a net loss of $2.1 million on revenue of $37.8 million a year earlier. “We have had success with the marketing of our products online via FansEdge.com and each of our web properties,” Dreams says in its recently filed third quarter earnings statement.

Dreams also continues to diversify its operation by making acquisitions. In September Dreams acquired the assets of StarStruck/ProTeam, a direct marketer of licensed products, such as jerseys and hats, for an undisclosed fee. Dreams will maintain StarStruck/ProTeam as a brand, but will operate the business on its own e-commerce platform. The acquisition will help Dreams establish a catalog business.
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