Dreams, Inc. (DRJ) reported a net loss of $1.1 million, or ($0.03) per share, for its second quarter ending 6/30/2009. The company reported a similar loss in the same quarter of 2008. Revenues in the quarter were $12.2 million, down 10% year over year.

Ross Tannenbaum, the CEO of Dreams, Inc. said, “We navigated our way through the turbulent first and second quarters with our business models and confidence intact, and no erosion of our margin. The additional challenge that the Company faced earlier this year was the forced liquidation of inventories by numerous retailers which mitigated our sales opportunities as we chose not to participate with that strategy.”

Dreams, Inc. is transitioning more of its sales from physical to online, and in the quarter had $6.7 million, or 55%, of its sales through the Internet.

Dreams, Inc. recently announced an alliance with JC Penney that allows the company to distribute its line of licensed sports memorabilia and apparel through the JC Penney web site. Dreams, Inc also announced a similar agreement with NCAA Football, which represents several college football associations.

Dreams, Inc. was founded in 1980, and is headquartered in Plantation, Florida.