Dulled Results from Sharper Image



By TSC Staff
6/8/2006 5:49 PM EDT
 
Sharper Image (SHRP:Nasdaq) posted a wider first-quarter loss Thursday as the retailer continues to grapple with declining demand for its mainstay "Ionic Breeze" product.
 
The San Francisco-based specialty gadget shop said its loss swelled to $12.6 million, or 84 cents a share, from $4.6 million, or 30 cents a share, a year earlier. Analysts polled by Thomson First Call predicted a loss of 76 cents a share.
 
Revenue fell to $106.8 million from $144.9 million, while same-store sales at its retail stores sank 29%. Wall Street anticipated revenue of $106.1 million for the quarter ended April 30.
 
"The first quarter's operating results reflect a continuation of previously discussed trends, especially weaker revenues from our Ionic Breeze line of air purifiers, and massage chairs," said Richard Thalheimer, founder, chairman and chief executive, in a statement.
 
"We have given significant attention to improving our advertising return on investment, and we were pleased to see increased advertising productivity in the quarter," he continued. "Although we've meaningfully reduced overhead and advertising expenses, we must now achieve an improvement in our revenue trends."
 
Sharper Image has floundered as the Ionic Breeze has been hit by negative publicity and biting reviews from Consumer Reports. The company has posted continuous double-digit declines in sales, and just last week said same-store sales for May tumbled 36%.
 
 
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