Eddie Bauer's Q3 loss grows
Eddie Bauer Holdings (Nasdaq: EBHI) reported a third-quarter loss, primarily driven by a $19.2 million non-cash change.
Net loss for the quarter ended Sept. 27 was $18.6 million, or a loss of $0.61 per share, compared to a loss of $16.4 million, or a loss of $0.54 per share, a year earlier.
Earnings before interest expense, income taxes, depreciation and amortization increased by $15.3 million to $0.1 million for the third quarter of 2008.
Sales fell to $207 million from $211 million in 2007.
"This was a transitional quarter for us as we scaled back substantially on unprofitable marketing, catalog and promotional expenses," said Neil Fiske, CEO of Eddie Bauer, in a statement. "While our sales were negatively impacted by the reduced promotional activity and by the economic downturn, our profitability improved substantially. "
Comparable-store sales fell 2.3 percent and the company's total comparable-store sales (retail, outlet and direct) fell by 1.1 percent in the quarter compared with the same period in 2007.
The company said selling, general and administrative expenses continued to show improvement as it maintained its focus on its key initiative of removing $25 million to $30 million in total SG&A expenses in 2008. SG&A decreased by 18.7 percent -- $18.3 million -- in the third quarter of 2008.
Eddie Bauer operated 254 retail stores and 118 outlet stores in 2008, compared with 260 and 121 stores, respectively, in 2007.
--Compiled by Wendy Geister
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