Sharper Image’s Quarter “Below Expectations”

Though second-quarter revenue increased 20% at San Francisco-based gadgets cataloger/retailer Sharper Image, the bigger story was that its net earnings fell 16%, to $676,000 from $808,000 last year.

“While we recorded record revenues in the second quarter, they were below our expectations,” founder/chairman/CEO Richard Thalheimer said in a statement. “Our retail sales were affected by less-than-anticipated television infomercial media availability and higher media rates, producing generally lower sales, particularly during the second half of July’s election-related media spending.”

Revenue for the three months ended July 31 was $149.0 million, up from last year’s $124.7 million. Direct marketing sales jumped 28%, to $39.0 million from $30.4 million. Internet sales increased 14%, to $20.4 million from $17.9 million.