Etoys’ 3Q loss reflects lowered expectations

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Internet retailer eToys released sobering third-quarter results Jan. 25 without statements from company executives. The company reported a net loss of $85.8 million in the third quarter, compared with a loss of $75.5 million in the same period last year. Excluding deferred compensation, goodwill, amortization costs and other factors, eToys lost $74.5 million for the three months ended Dec. 31. The loss exceeded the estimates by analysts surveyed by First Call.

In December, eToys lowered expectations for the third quarter and the fiscal year after disappointing sales during the Thanksgiving holiday. In early January, the company announced it would lay off 700 of its 1,000 employees and close its European operations and two of its domestic warehouses. The company said it has $82.8 million in cash on hand, enough to last through March, the end of its fiscal year; it has retained Goldman Sachs to explore its options.

Copyright January 2001, Crain Communications Inc.

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