Sharper Image can’t stem its sales slide

First-quarter Internet sales at Sharper Image Corp. decreased 26% from Q1 last year, to $17.2 million from $23.2 million. The decline was in line with total company sales decreases vs. last year—down 26% to $106.8 million from $144.9 million.

The company reported a net loss for the first quarter of $12.6 million, compared to a net loss of $4.6 million a year earlier.

Total store sales for the first quarter decreased 28% to $56.8 million from last year`s $78.3 million. Comparable store sales decreased 29%. Total catalog/direct marketing sales for the first quarter decreased 16% to $23.5 million from last year`s $27.9 million. Wholesale sales for the first quarter were down 45% to $6.5 million from last year`s $11.8 million.

"The first quarter`s operating results reflect a continuation of previously discussed trends, especially weaker revenues from our Ionic Breeze line of air purifiers, and massage chairs," said Richard Thalheimer, founder, chairman and chief executive officer. "We have given significant attention to improving our advertising return on investment, and we were pleased to see increased advertising productivity in the quarter. Although we`ve meaningfully reduced overhead and advertising expenses, we now must achieve an improvement in our revenue trends.”

Thalheimer added that several new products will help turnaround efforts. “Our new product introductions have started flowing into the retail stores, catalog and online, and this season`s Father`s Day catalog showcases 45 new products. Some have excellent high-volume potential," Thalheimer said.