Promotions, deliveries impact Geeknet Q4 income

Fairfax, Va. – A competitive promotional environment and delivery problems had a negative impact on net income and revenues at Geeknet, parent company of online retailer ThinkGeek.com and licensed merchandise distributor ThinkGeek Solutions, during the fourth quarter and full year 2014. Net income for fourth quarter 2014 was $1 million, down 80% from net income of $5.1 million in the same period a year earlier.



Total revenue for fourth quarter 2014 was $72.4 million, a decrease of 3% from $74.3 million.



For the full fiscal year, Geeknet reported a net loss of $8.3 million, up from a $200,000 net loss during the full fiscal year 2013. Revenue grew 2% to $140.7 million from $138.3 million.



"We are extremely disappointed with our fourth quarter and 2014 performance,” said Katy McCarthy, chairman and CEO. “It was a very competitive and promotional environment. In addition, the delivery issues experienced at our third-party fulfillment center and related customer service issues negatively impacted revenue and gross margin. Therefore, in 2015, we are committed to sharpening our focus on product leadership, executing on our strategic plan and improving the customer experience.”