LOS ANGELES, Dec. 18, 2012 /PRNewswire/ -- Luxury living online retailer, LuxeYard (OTCQB: LUXR), announces a new look for its flagship online property, LuxeYard.com, and a new brand identity as part of the Company's improved business strategy.
Over the past quarter, the Company's implemented a pivot in its business model which involved moving away from exclusively flash sales, focusing instead on making the online experience easier, and providing style and value to its customers. Customers will be able to shop on LuxeYard by choosing an aesthetic look of choice, and then select the perfect pieces to suit their tastes from a large number of furnishing and decor items within their style. These items are hand-picked by our professional buyers based on style, quality, and price.
Due to the relationships that the Company has developed with the world's premier home furnishing manufacturers, LuxeYard.com now supports a catalogue of items that will be available continuously for sale. This static virtual inventory will allow customers to make thoughtful purchases, based on detailed information provided on each piece, including materials used, structural composition, reliable ship-to dates, and price comparisons.
"LuxeYard has accomplished a great deal during the 4th quarter of this year," said LuxeYard, Inc. interim CEO Amir Mireskandari. "Since LuxeYard launched a year ago, it has gained tremendous experience and is now able to capitalize on the vast amount of information we have gathered from both our customer base as well as our internal and cost containment processes. We are excited to announce the current new look and functionality for LuxeYard.com. Furthermore, the ongoing shift in the Company's business model, which will focus its efforts on selling into our core competencies, especially high-end, luxury home furnishing and decor at discounted rates, will propel LuxeYard to a prominent position in the luxury ecommerce space while improving revenue and profitability. "
Since this pivot in business strategy, LuxeYard has been able to cut operating costs by roughly 70%. Amir Mireskandari further commented on the shift, "During this current quarter, without compromising our current business, we have taken the following steps:
- Canceled or terminated non-profitable management agreements and acquisitions
- Reduced headcount from 60 to 15
- Eliminated overhead expenses and increased efficiencies to reduce operating costs by roughly 70%
- Consolidated three shipping points into one, saving more than $60,000 per quarter
- Reduced SKU count and the additional production costs associated with the higher SKU counts
- Eliminated non-profitable product categories
- Realigned our growth strategy to focus on member retention and customer experience, versus member count and member growth
- Focused on conversion ratios through measuring and responding to average time members spend on site, while promoting cross-selling through our new style-based inventory selection
- Began to realize positive margins from sales
We are proud of the accomplishments we've made during the current quarter. The upcoming quarter brings new opportunities to LuxeYard, and I'm confident that the Company's strategy will bring increased profitability and shareholder value in the year to come. The Company has a solid foundation and a defined growth plan that we believe will carry us well into 2013 and beyond."
ABOUT LUXEYARD, INC.
LuxeYard is an e-commerce website for luxury home furnishings and decor that offers access to unique products sourced from an experienced team at prices up to 70 percent off retail. LuxeYard is the pioneer of Concierge Buying, which gives members the power to determine the items sold on the site, and Group Buy that allows them to lower the price by sharing sale items with friends. With a veteran retail, e-commerce, and digital marketing management team, LuxeYard partners with trendsetters and industry insiders to deliver interactivity and content on its pages. Please visit www.luxeyard.com for more information.
This press release contains forward-looking statements regarding LuxeYard, which involve risks and uncertainties, and actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the factors included under the heading "Risk Factors" on Form S-1/A, filed with the Securities and Exchange Commission on September 21, 2012, a copy of which may be obtained by visiting the SEC's web site at www.sec.gov. LuxeYard's actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance.
Investors can register to receive news releases by visiting http://www.luxeyard.com/investors/signup.php.
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SOURCE LuxeYard, Inc.