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Eddie Bauer's first half disappoints, sales down

19
Aug '06
Casual sportswear and accessories retailer Eddie Bauer Holdings Inc has reported financial results for the second quarter and year-to-date of 2006.

For the second quarter ended July 1, 2006, total revenues were $225.7 million, compared to $243.8 million in the second quarter of 2005. Total revenues for the second quarter of 2006 included net merchandise sales of $211.6 million, shipping revenues of $8.6 million, licensing royalty revenues of $3.8 million, royalty revenues from foreign joint ventures of $1.6 million, and other revenues of $0.1 million.

In the second quarter of 2005, total revenues included net merchandise sales of $229.4 million, shipping revenues of $9.3 million, licensing royalty revenues of $3.3 million, royalty revenues from foreign joint ventures of $1.5 million, and other revenues of $0.3 million.

Net merchandise sales for the second quarter of 2006 included $153.8 million of sales from the company's retail and outlet stores and $57.8 million of sales from its direct channel, which includes sales from its catalogs and websites. This compares to $169.8 million of sales from the company's retail and outlet stores and $59.6 million of sales from its direct channel in the year-ago second quarter.

Comparable store sales for the second quarter of 2006 declined 5.9%. Comparable store sales include net sales from retail and outlet stores that have been open for one complete fiscal year.

Fabian Mansson, CEO, said,"While we are disappointed with our second quarter performance, we are looking forward to the upcoming introduction of our new fall product line in our stores, in our catalogs and online. The collection has been revamped to be more consistent with our core customers' preferences and Eddie Bauer's heritage as an outdoor lifestyle brand. While we believe it will take some time to realize the full impact of the changes we have been making, and the consumer environment remains uncertain, we believe there are a number of opportunities ahead to leverage the strength and unique positioning of the Eddie Bauer brand."


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