The relaunch comes as analysts are predicting record e-commerce for the holiday shopping season. Consumers are expected to spend nearly $10 billion, with online toy purchases accounting for about $1.05 billion, according to a new report.

KB Toys, which is based in Pittsfield, Mass., believes online sales represent an important business segment, but not a business in its own right.

"We are dedicated to running a profitable model," said John Reilly, a KB spokesman. "All indications are we're going to have a great year."

The privately held company declined to give specific traffic or revenue targets for eToys.

In April, KB Toys acquired eToys' remaining inventory for $5.4 million. A month later, it plunked down $3.35 million for eToys' corporate name and Web address.

As part of the deal, eToys agreed to provide certain e-mail services for KB Toys, chiefly, contacting its customers with information about how they can continue online toy shopping via KBkids.com.

KB Toys has integrated the acquired assets into its Denver-based KBkids.com operation. It has also kept a fomer eToys warehouse in Virginia running.

The reopening of eToys revives one of the biggest names of the dot-com boom. Once a Wall Street darling with a $10 billion market value, the Santa Monica, Calif., company was unable to control overhead and lost money at a rapid clip.

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It first ran into trouble during the holiday sales season of 1999, when it failed to make many deliveries on time. Determined to do better in 2000, eToys poured capital into a new warehouse facility and moved delivery in-house. But the bet never paid off and as sales faltered, the company spiraled.

KB Toys went private in December 2000 through a management buyout in partnership with Boston-based Bain Capital. It does not release detailed financial information.