It was a tough first quarter all around for web-only computer gear and gadgets retailer Geeknet Inc. as the company shifts to selling more private-label products and less lower-priced merchandise from other manufacturers.

For the first quarter ended March 31, Geeknet, No. 202 in the Internet Retailer 2015 Top 500 Guide reported:

• Net sales declined 15.9% to $19.1 million from $22.7 million in the first quarter of 2013.
• Net loss was $3.9 million compared with $2.2 million.
• Spending on marketing remained flat at $2.5 million.
• Spending on technology and design grew 36.8% to $2.6 million from $1.9 million.
• Spending on general and administrative expenses increased 26.3% to $2.4 million from $1.9 million in 2013.

Geeknet posted a bigger loss and a drop in sales but is pleased with progress its making in developing and selling more of its own products, CEO Katy McCarthy told Wall Street analysts according to a transcript from SeekingAlpha.com. “We are focused on enhancing overall profitability by offering more proprietary products while eliminating less profitable SKUs from the assortment,” McCarthy told analysts. “We also reduced the number of site-wide promotions and instead focused on targeted promotions.”

Geeknet, which operates Geeknet.com, launched its new private-label strategy in August 2014 when the company began diversifying with the acquisition of video game manufacturer Treehouse Brand Stores LLC () for $1.5 million in cash.

The company had an aggressive timeline in the first quarter for rolling out new products of its own design or exclusively licensed, McCarthy said. “We launched 189 new items, including 70 exclusive items,” McCarthy told analysts.

The new products include handbags and exclusively licensed hoodies from Star Trek Next Generation, a TV show. “We want to continue to enhance profitability by focusing on proprietary products, getting bigger on (super) hero products and categories, reducing commoditized SKUs, and expanding our number of licenses for exclusive products.”