RedEnvelope Loss Widens in Fourth Quarter, Year

RedEnvelope Inc., San Francisco, reported fourth-quarter 2006 revenue of $22 million, down from $22.2 million in fourth-quarter 2005. The company’s net loss widened to $4.5 million for the quarter, compared with a $3.1 million loss a year earlier.

For the entire fiscal year, the company’s revenue rose from $101.4 million to $113.2 million, while its net loss deepened from $5.2 million to $5.6 million. The quarter and the year ended Apr. 2.

In fiscal 2006, RedEnvelope’s net revenue per order grew to $79 from $78 the previous year, and it shipped approximately 1.4 million orders, a 10% gain over 2005’s level.

During fiscal 2007, the company will focus on growing the relationship gift market among its primarily female customer base.