Spiegel Group’s Second Quarter Reflects Slowdown

Downers Grove, IL–Multititle apparel and home goods cataloger The Spiegel Group [NASDAQ: SPGLA], whose titles include Newport News, Eddie Bauer, and Spiegel, saw sales and earnings slip for the second quarter ended June 30. The company reported earnings of $5.0 million, or $0.04 per share, compared to earnings of $25.8 million, or $0.20 per share for the same period last year. At least the shortfall came as no surprise, as those earnings were in line with the company’s estimates.

Total revenue for the quarter declined 4% to $831.9 million, which reflects a 5% decrease in net sales and a 4% decrease in finance revenue. Net sales included a 6% drop in direct sales and a 4% drop in retail sales. Direct sales reflected a 61% increase in e-commerce sales, which was offset by a 15% decrease in catalog sales.