The Top 500 retailer says the cuts should help ModCloth turn a profit. The retailer sold an Internet Retailer-estimated $148 million online last year.

ModCloth Inc. has laid off an undisclosed number of employees across its company, a spokeswoman for the retailer tells Internet Retailer.

The retailer, which sells women’s clothes that typically have a vintage feel, went through a similar round of layoffs in July.

The layoffs, which occurred last week, should help the fast-growing retailer turn a profit, the spokeswoman says.

“As a startup it is in our DNA to remain nimble and these cuts will allow us to return to profitability,” she says. “We are confident that the difficult decisions made this week position us for a return to stronger growth in the months ahead.”

ModCloth, No. 178 in the Internet Retailer 2014 Top 500 Guide, generated an estimated $148 million last year, up nearly 41% from $105 million a year earlier.


Founded in 2002, the retailer’s sales have jumped dramatically from only a few years ago; it sold $15.9 million in 2009, according to Internet Retailer’s

While ModCloth’s growth rate has outpaced that of many other apparel retailers—the growth rate among all Top 500 apparel retailers was 20.0% last year—it has been operating in the red, the spokeswoman says.

The retailer says that it is confident that this round of cuts will be its last.