Home appliance retailer Avid Life Media Inc. said Friday that its annual sales fell 16% to $7.4 billion, while sales for the company’s Humidifiers unit dropped 9% to a record $739 million.
Avid reported a loss of $12.3 million.
The company said its Humidify unit fell 17% in its fourth quarter, compared with a 16% decline in the prior year.
Avid said its net loss increased 12% to between $4 million and $6 million.
Humidification equipment sales fell 20% to about $5.5 billion in the fourth quarter.
For the year, Avid recorded sales of $8.1 billion, down from $8 billion the year before.
The company said the declines in sales were largely attributable to lower sales of its HumiBees humidifiers, which were used to cool homes in colder climates.
“As a result of our investments in HumidiBEEs and its associated technologies, we saw sales decrease due to a drop in the demand for the products,” Avid said in a statement.
In its earnings call on Thursday, Avids Chief Financial Officer Scott C. Haggerty blamed the slowdown on the loss of HumiBee sales.
He said the company is working to lower the price of the product, and is in discussions with several other retailers about buying the products.
As a company, Avidd has had difficulty attracting new customers, he said.
Citing a “very challenging environment,” Avidd said its total net loss was $3.3 billion.
The loss was partially offset by a $1.9 billion profit, and the company said it is continuing to invest to grow its business.
It’s been a tough year for Avid.
It had been looking to expand into the consumer electronics and appliances space.
Its Humi-Bee sales are down by about a third year, and its Humibaby unit saw sales decline by about half.
With all those sales declines, AviD’s market share fell to 3.4% from 4.5% a year ago.
Haggerty said Avid is looking to add Humidizers to its lineup.
One of the biggest HumiBoise products, the HumiHum, will be added to Avid’s HumiLabs line of products, he added.
AviD said it expects to continue to see a strong year, which it expects will drive higher sales.
“Avid has made significant investments to build the businesses it now operates in a very challenging environment, which has forced us to make a number of changes,” Haggerbyt said.
“Our strategy for growth has been to focus on delivering products at the lowest possible prices.
This includes offering customers the highest-quality, best-performing products and technologies that are available at the most competitive pricing in the industry.”
In addition to its Humis, AvID has HumiMasters, HumiRacks, and HumiAerosol products, which include the Humibee, Humidiy and Humidifi.
While Avid has been facing increasing competition, Haggertheres not any shortage of home appliances.
Another big retailer, Home Depot Inc., said it had a net loss of about $1 billion.