Expanded Distribution Improves Gaiam's 3Q Revenue

Expanded Distribution Improves Gaiam's 3Q Revenue

BROOMFIELD, Colo.--The bottom line improved for Gaiam (NASDAQ:GAIA)during its third quarter (3Q01), ended Sept. 30, mainly due to increased salesafter implementing its store-within-a-store concept. Sales increased 75.7percent, from $13.6 million for 3Q00 to $23.9 million for 3Q01. Gross marginheld relatively steady, staying at around 59 percent of sales for both quarters.Even though Gaiam spent $5 million more in operating costs, operating expensesheld at 52 percent, the same as last year's comparable quarter. Net incomeimproved slightly, clocking in at $1 million (or $.07 per share gained), up 67.4percent from $.6 million (or $.05 per share gained) for the same quarter lastyear.

"Continued strong acceptance across our retail channel contributedsignificantly to our internal growth," said Lynn Powers, president."Our store-within-a-store concept that we launched at the end of the thirdquarter last year continues to be a success. We added some new retail accounts,including Sports Authority and Books A Million, as well as maintaining verystrong comparable sales with our other major accounts, such as Target and WholeFoods."