The company will introduce 50 to 60 new products a month in awide range of price points, even through the summer selling season,said senior executives at the second conference call in 30 days todiscuss first-quarter sales. In addition, the merchandise mix ismore likely than in the past to appeal to women and children.

"We had not really had a significant change in merchandising inthe last three years," said Richard Thalheimer, Sharper Imagefounder and CEO. "Now, the stores are starting to look differentevery day."

In recent years, the retailer had focused largely on IonicBreeze air purifiers and massage chairs. Recent sales resultsreflected market saturation and greater competition in thosesegments, he said. Total company revenues for the quarter endedApril 30, 2006, were $106.8 million compared to $144.9 million in2005, a decrease of 26%. Comparable store sales declined 29%.Sharper Image reported a net loss of $12.6 million for the quarterversus a loss of $4.6 million in 2005.