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Sharper Image Reports Narrower Loss

November 22, 2002|Delbert Ellerton | Bloomberg News

Sharper Image Corp.'s third-quarter loss narrowed as the specialty electronics retailer had fewer promotions and opened more stores, boosting sales.

The net loss shrank to $493,000, or 4 cents a share, from $3.82 million, or 32 cents, in the year-earlier quarter, the San Francisco-based company said in a statement. Sales in the quarter ended Oct. 31 rose 38% to $106.1 million.

Sharper Image sold more stereos, air purifiers, massage chairs and other gizmos at full price, Chief Financial Officer Jeff Forgan said in an interview. Sharper Image's gross margin, or the amount of sales left after costs from making or acquiring the goods sold, rose 4.1 percentage points to 54.4%.

"We're not being promotional at all," Forgan said. "We are maintaining our pricing integrity."

Sharper Image shares fell 92 cents to $19.96 on Nasdaq. They have more than doubled in the last year.

The company was expected to have a loss of 5 cents a share, according to analysts surveyed by Thomson First Call.

Sharper Image opened four stores in the quarter, increased ads and sold more private-label products.

It also agreed to sell its gadgets at Circuit City, the No. 2 electronics retailer.

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