Revenue during the quarter grew 19.91 percent to $147.11 million from $122.68 million in the previous year period. Gross margin for the quarter contracted 438 basis points over the previous year period to 34.16 percent. Total expenses were 94.09 percent of quarterly revenues, up from 91.65 percent for the same period last year. That has resulted in a contraction of 244 basis points in operating margin to 5.91 percent.

Operating income for the quarter was $8.70 million, compared with $10.25 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $10.79 million compared with $11.78 million in the prior year period. At the same time, adjusted EBITDA margin contracted 226 basis points in the quarter to 7.34 percent from 9.60 percent in the last year period.

"Our results demonstrate the importance, benefit and potential of our acquisition of etailz. Trans Worlds sales growth is directly attributable to the diversification of our business into the fastest growing segment of retail: the digital marketplace. In our FYE segment, although we experienced double digit growth in our lifestyle categories, we were impacted by negative mall traffic and the ongoing disruption in our heritage media categories. These headwinds will continue to impact our brick and mortar business in 2017 and we will continuously evaluate our store portfolio. At the same time, with etailz contributing a quarter of our sales and trending upward, our business is correctly positioned for growth," commented Mike Feurer, Company chief executive officer.