Financial Reports: Eddie Bauer, Harry & David

Higher Sales, Wider Loss for Eddie Bauer
First-quarter direct sales at Eddie Bauer Holdings increased 16.5%, to $63.6 million for the three months ended March 31. Total first-quarter revenue rose 10%, to $214.0 million from $194.5 million. Same-store sales increased 9.5%.

The Redmond, WA-based apparel merchant reported a first-quarter net loss of $44.8 million, compared with the net loss of $35.6 million a year ago. Several nonrecurring expenses contributed to this year’s first-quarter loss, including a previously announced $5 million merger termination fee and $1.4 million in legal fees and expenses related to the company’s proposed sale to Sun Capital Partners and Golden Gate Capital, $8.4 million of expenses related to the resignation of the company’s former CEO, and a $1.6 million legal settlement.

Interim CEO Howard Gross said customers have responded well to a new merchandise assortment that “is more in line with the needs and preferences of our core customers and capitalizes on our brand’s unique outdoor heritage.”

Harry & David Trims Quarterly Loss
Third-quarter net sales at Harry & David Holdings increased 4%, to $98.2 million for the 13 weeks ended March 31. This increase helped the Medford, OR-based merchant reduce its net loss to $16.8 million from $19.5 million for the comparable quarter of last year.

Net sales for the direct marketing division, which includes the Harry & David food gifts catalogs and Website, the catalog and Web business of horticultural mailer Jackson & Perkins, and outbound telemarketing sales, rose nearly 5%, to $47.6 million. Net sales for Harry & David stores fell 4%, to $20.5 million, largely due to the decision not to continue offering discounted gift cards.

Harry & David sold most of the assets of Jackson & Perkins last month for roughly $21 million. (See ”Harry & David Sells Off Jackson & Perkins.”)

Partner Content

The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
Strategies for Maximizing Mobile Point-of-Sale Technology - NetSuite
Learn the top five innovative ways to utilize your mobile POS technology to drive customer engagement, increase sales and elevate your brand.