Financial Reports: Spiegel, PC Mall, Drugstore.com

Spiegel Group Post $12.3 Million 3Q Loss

Downers Grove, IL–The Spiegel Group (NYSE: SPGLA), which mails the Newport News, Eddie Bauer, and Spiegel catalogs, posted a loss of $12.3 million for the quarter ended Sept. 29. For the comparable quarter of last year, Spiegel had earnings of $13.5 million. Total third-quarter revenue fell 13%, to $703.8 million, reflecting an 11 % decrease in net sales and a 37% decrease in finance revenue. The company attributes the drop in finance revenue to slower receivables growth, lower retained-interest income from securitized receivables, and a decrease in net pretax gains from the sale of receivables. Net sales for the quarter included a 13% drop in direct sales and a 7% decrease in store sales. Web sales increased 42%, but they were offset by a 22% decrease in catalog sales.

PC Mall Ends Quarter in Black Torrance, CA–Computer reseller PC Mall (Nasdaq: MALL – news) reported an 8% decline in third-quarter net sales, to $171.9 million for the three months ended Sept. 30. Nonetheless, the cataloger reported net income of $493,000, compared with the previous third quarter’s loss of $714,000.

PC Mall’s eCOST.com and eLinux subsidiaries significantly improved their quarterly operating results from a year ago. The former reported breakeven income from operations for the quarter compared with a loss from operations of $500,000 million a year ago. As for eLinux, the outbound sales unit focused on Linux-based solutions, it reported a loss from operations of $100,000, compared with a loss of $500,000 a year ago.

Drugstore.com Cuts Its Losses Bellevue, WA—Online marketer/cataloger Drugstore.com (Nasdaq: DSCM) enjoyed a 32% hike in third-quarter net sales, to $35.0 million. What’s more, the company’s third-quarter net loss decreased from $45.7 million last year to $26.2 million. For the fourth quarter of the year, Drugstore.com expects net sales to be $40 million-$41 million, and it expects a net loss (before other non-cash expenses, amortization of intangible assets, amortization of stock-based compensation, extraordinary gain and cumulative effect adjustment) of approximately $19 million.

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.