iVillage Drops Nearly 10% on Wider-Than-Expected Loss
Updated from 12:20 p.m. EDT
Shares of
iVillage
(IVIL)
fell 10% Friday after the women's Web site reported a wider-than-expected second-quarter loss and said it would replace CEO Candice Carpenter with President Doug McCormick.
New York-based iVillage finished down 9/32, or 4%, at 6 1/4.
One of the company's co-founders, Carpenter will become chairwoman on Aug. 1 and assist in developing iVillage's long-term strategies of garnering global partnerships, building corporate alliances and bringing the brand to other media.
"It is becoming more important to put a face on our brand to help connect women to it," Carpenter said in a statement. "In addition to leveraging the brand in other media and forging relationships, I am eager to spend more time in this role, representing the brand to women here and around the world."
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Before joining iVillage two years ago, McCormick served as CEO at
Lifetime Television
. During his six-year tenure there, he created the programming and marketing strategy "Television for Women,'' credited with increasing the network's market value by $3 billion.
iVillage posted a second-quarter net loss of $19.9 million, or 94 cents a share, vs. a loss of $15 million, or 63 cents a share, in the same period a year ago. The figure excludes one-time charges of $8.1 million related to iVillage's investment positions and $9.3 million from discontinued operations. Wall Street analysts had expected a loss of 88 cents a share, according to
First Call/Thomson Financial.
Revenue in the quarter tripled to $19.4 million from $6.4 million in the second quarter of 1999.
At June 30, iVillage had $77.8 million in cash, cash equivalents and restricted cash on its balance sheet, the company said.
iVillage.com features 16 channels that focus on issues such as fitness, money and parenting. iVillage provides interactive services, peer support and online access to experts and tailored shopping opportunities.
