Sharper Image Catalog Sales Rise 20%
San Francisco-based gadgets marketer Sharper Image (Nasdaq:SHRP) posted solid revenue and earnings for its quarter ended Oct. 31. With the third-quarter results, the company is on track to be profitable in all four quarters.
Catalog sales increased 20%, to $39.8 million for the quarter ended Oct. 31, compared with $33.3 million last year. Internet sales increased 36% to $17.4 million from last year’s $12.8 million. Total company revenue increased 24% to $131.1 million from last year’s $106.1 million. Total store sales increased 24% to $70.7 million from $57.2 million in the prior third quarter; comparable store sales increased 10%. The third quarter net earnings were $985,000, improved over last year’s net loss of $504,000.
Earnings Jump 58% at Williams-Sonoma A 28% rise in direct-to-consumer sales helped propel home products cataloger/retailer Williams-Sonoma (NYSE: WSM) to post double-digit top and bottom line gains. Net earnings increased 58% to $23.9 million for the quarter ended Nov. 2, compared with $15.1 million last year. Net revenue increased 20% to $632.8 million compared with $527.9 million last year.
San Francisco-based Williams-Sonoma mails the Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, Williams-Sonoma, Hold Everything, West Elm, and Chambers catalogs. The company’s direct-to-customer net sales, which include catalog and Internet sales, increased 28% to $239.3 million, compared with $187.7 million last year. The increase was driven by incremental net sales in its Pottery Barn, Pottery Barn Teen, and Pottery Barn Kids catalogs. Internet net sales increased 71% to $82.4 million, compared with $48.0 million last year.
Retail net sales increased 15% to $351.4 million compared with $306.1 million last year mainly from 39 new stores. Comparable store sales increased 6%. Incremental net sales generated by the Pottery Barn Kids, Pottery Barn, and Williams-Sonoma brands were the primary contributors to this year-over-year net sales increase.
Selling, general and administrative (SG&A) expenses increased to $210.1 million during the quarter due to increased circulation and higher catalog advertising costs. Last year, SG&A costs totaled $181.5 million.
Direct Sales Fall 9% at Coldwater Sandpoint, ID-based cataloger/retailer Coldwater Creek (Nasdaq: CWTR ) shook off declining net sales from its direct business to post gains in sales and net income. For the quarter ended Nov. 1, net income increased 16%, to $5.6 million, compared with net income of $4.8 million last year. Net sales for the quarter increased 7% to $138.2 million from $128.8 million last year. Direct sales fell 9%, to $83.8 million, compared with $91.6 million last year. The direct segment’s net sales represented 61% of Coldwater’s total net sales in the fiscal 2003 third quarter, compared with 71% last year.
Petsmart Increases Sales and Income Phoenix-based Pet supplies cataloger/retailer Petsmart (NasdaqNM:PETM) reported increased earnings on demand for pet services but sales were lighter than many had expected as a warm spell sapped demand for cold-weather products. Net income for the quarter ended Nov. 2, rose to $29.6 million, compared with $20.6 million last year. Net sales climbed 12%, to $733.7 million, including a 27% jump in pet services. The company opened 23 new stores, closed one location and reformatted 33 stores in the third quarter of 2003. Comparable store sales rose 8% in the quarter.