Gaiam, Inc. (Nasdaq: GAIA), a natural lifestyle and environmental product company, reported that revenue in 2006 increased 54% to $219.5 million.
Revenues for Gaiam’s direct to consumer segment increased 73.8% to $125.7 million. Revenues for Gaiam’s business segment increased 33.7% to $93.8 million.
Gross profit margin increased to 63.9% from 56.5% in 2005, primarily due to higher media sales, lower cost of goods sold associated with higher DVD sales volume and the elimination of fees previously paid for third party distribution.
Net income improved to $5.6 million or $0.23 per share, as compared to $1.3 million or $0.08 per share in 2005.
The number of paying members in Gaiam’s community and subscription clubs exceeded the 100,000 level.
According to Nielsen’s VideoScan, Gaiam’s market share in the fitness/wellness DVD category grew to 44.7% in 2006 from 41.5% in 2005.
“We are very pleased with our performance for both the fourth quarter and full year 2006,” said Jirka Rysavy, Chairman and Chief Executive Officer. “Our media-focused strategy, continued development of community assets, increasing gross margin and additional volume in our centralized distribution center should continue to improve our pretax margin, which during the fourth quarter increased to above 10%, from 4.2% a year ago.”
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