Q1 Internet sales at Sharper Image drop 12%

Internet sales at multi-channel specialty retailer Sharper Image Corp. dropped 12% in the first quarter ended April 30 to $23.2 million from $26.2 million a year earlier, the retailer said. Last year’s first quarter revenue increase was 58%.

For the year, Internet sales dropped to 16% of total revenue, compared with 16.8% in the prior year.

Total revenue for the quarter dropped 7% to $144.9 million from $156.4 million last year. Last year’s first quarter revenue increased 34% over the prior-year quarter. Q1 comp store sales declined 16%. The company opened six new stores in the first quarter.

Sharper Image experienced a net loss of $4.6 million for this year’s first quarter, compared with net earnings of $1.9 million in 2004’s first quarter.

The retailer said its earnings were hurt by sluggish consumer spending. It said it expects a net loss in the second quarter, and considers fiscal 2005 as a transitional year.