Celebrate Express lowers earning guidance due to costs, CEO resigns
16 Feb '06
2 min read
Leading e-commerce provider of consumer celebration products, Celebrate Express announced updated revenue and earnings guidance for the fiscal year ending May 31, 2006.
While the Company has continued to experience strong consumer demand, increased distribution center costs and higher outbound freight costs result in decreased earnings guidance for fiscal 2006.
As a result of delays in the automation of the Company's distribution center, the Company now expects to incur higher costs than originally anticipated in the fulfillment area through the remainder of the fiscal year.
The Company expects that more revenue than originally anticipated will move into the fourth fiscal quarter due to order backlogs.
Continued increases in fuel surcharges and third-party carrier rates have also contributed to higher outbound shipping costs.
Effective March 1, 2006, the Company will moderately increase shipping rates charged to customers to reduce the impact of outbound freight cost increases.
As a result of these events, the Company expects to incur a loss in the third fiscal quarter ended February 28, 2006.
Resignation of CEO
The Company announced that Mike Jewell resigned as Chief Executive Officer and Chairman of the Board of Directors of Celebrate Express Inc, effective February 9, 2006, for personal reasons.
Jewell will remain with the Company as a consultant and advisor to assist the Company through a transition to a new chief executive officer.
marketing@alchempro.com
