Kids Stuff Inc said sales for the second quarter of 2001 were $0.960m, a reduction of 76 per cent, compared with $3.973m during the same period in the year 2000. The net loss for the quarter was $0.955m compared with a net loss of $0.477m during the second quarter of 2000. The sales decrease was due to an 85 per cent drop in the number of catalogues mailed to customers. This resulted in the revenue reduction and also raised selling expenses to 62.7 per cent, compared with 42.1 per cent during the prior period.