Sharper Image Sales Slump, Will Close VA DC

Fiscal problems continued to shadow gifts and gadgets cataloger/retailer Sharper Image during the second quarter ended July 31. Total second-quarter revenue decreased 25%, to $80.3 million, compared to $107.2 million in the second quarter of 2006. And the San

Francisco-based company reported a net loss of $20.6 million, compared to a net loss of $14.6 million a year ago. Total store sales for the quarter decreased 11.3%, to $57.4 million, while same-store sales fell 10%. Sharper Image’s total catalog sales/direct marketing sales (including wholesale) plummeted 68%, to $5.7 million, compared to $18.2 million in 2006; Internet sales dropped 35% to $9.8 million, down from $15.1 million for the same period last year.

The company announced plans to close its Richmond, VA-based distribution center to streamline functions and increase operational efficiency. Sharper Image will phase out operations at the DC, which presently handles order processing, fulfillment, and customer service, during the next several months. As a result, the workload will be assumed by the company’s DCs in Little Rock, AR, and Ontario, CA.