Memorabilia giant Dreams, Inc. is trimming its workforce, scaling back wages and taking other steps in an effort to boost its bottom line.
Dreams, Inc. (NYSE Amex:DRJ) lost $989,000 in the first quarter of 2009 according to a financial report released by the publicly traded company. Revenues were also down. Dreams reported $14.8 million in revenue, down 20 percent from $18.5 million for the same quarter in 2008.
Dreams, parent company of Mounted Memories, FansEdge and ProSportsMemorabilia.com , reported that it faced additional challenges this year because competition from the "aggressive discounting of products from numerous retailers forced to liquidate their inventories". Dreams said it decided not to utilize a similar strategy despite increased losses.
Like many memorabilia outlets, Dreams’ business has been highly seasonal with a greater portion of revenues and operating profits occurring in the fourth quarter. The quarter ending March 31, has traditionally been a challenging one, following the aftermath of the heavy-buying holiday season.
"We navigated our way through the turbulent first quarter with our business models and confidence intact, and with no erosion of our margin," said Ross Tannenbaum, Dreams’ President & CEO.
"These first quarter results were ahead of our internal budgets, and we believe, have us on track to attain our financial goals for the year, which is a return to profitability. We have implemented numerous corporate savings initiatives that will greatly reduce our over-head beginning in our second quarter. Some of these initiatives included a significant reduction in our workforce, management and employee wage reductions, the restructuring of many of our stores and warehouse rents, reducing capital expenditures and the re-negotiating of vendor pricing and terms. Also in the period, we continued to sign meaningful web syndication accounts that will add new on-line stores at targeted times throughout the year," Tannenbaum said.