LOS ANGELES — Online retailer LuxeYard said it has revamped its website and overhauled its business model to eliminate "flash sales" and concentrate on making its products available continuously.
The publicly traded company, which included a "going concern" qualification in recent filings with the Securities and Exchange Commission, also said it had taken steps to reduce operating costs by about 70% by, among other things, slashing its staff from 60 to 15 and eliminating several unprofitable merchandise categories.
"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 furnishings and décor at discounted rates, will propel LuxeYard to a prominent position in the luxury e-commerce space while improving revenue and profitability," said Amir Mireskandari, interim CEO.
He said other recent cost-cutting measures have included consolidating three shipping points into a single location, reducing the number of available SKUs, and canceling unprofitable management agreements and acquisitions.
According to Mireskandari, the company is now focused on member retention instead of rapidly adding new members, and is promoting cross-selling across various product categories through a new style-based inventory selection.
"We are proud of the accomplishments we've made during the current quarter," he said. "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."
