X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN FRANCISCO-Sales at the Sharper Image rose 4% in December, but the increase in holiday sales fell far short of the 15% to 18% improvement that had been hoped for, disappointing analysts and company officials.

Richard Thalheimer, the founder, chairman and CEO of Sharper Image termed the results “disappointing” but said that comparable store sales were “in line with our guidance of negative mid-single digits.” The company “lost some potential sales gains” by not having enough of some key holiday items in stock, Thalheimer said, adding that store traffic was lighter than officials had anticipated, especially in the 10 days leading up to Christmas Day. Other contributing factors to the holiday sales results included higher freight costs and a slight change in the merchandise mix to lower-margin items, Thalheimer said.

While the company lowered its earnings expectations on the basis of the sales report, it said it is confident in its overall strategy and plans to increase the number of new stores in its 177-unit chain by 15% to 20% in 2005. Thalheimer said the company will undertake “a critical review of our expense structure” and will control discretionary spending while continuing to develop new products to introduce in the summer and the fall.

The Sharper Image sales report followed a November report in which the company’s sales increased 17% to $78.9 million in November, compared with $67.3 million in November 2003 but comparable store sales decreased 3% in the same period. The lowered earnings guidance for the fourth quarter now estimates net profit at 94 cents to 99 cents per share, compared with $1.40 in last year’s fourth quarter. For the full year, the estimate is now 90 cents to 95 cents per share, compared to last year’s earnings of $1.65 per share.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.