SPIEGEL REPORTS SECOND QUARTER RESULTS
SPIEGEL REPORTS SECOND QUARTER RESULTS DOWNERS GROVE, Ill., July 23 /PRNewswire/ -- Spiegel Inc.
(NASDAQ-NMS: SPGLA) , the nation's largest direct marketer and a leading specialty retailer, today reported that total revenues for the second quarter ended June 30, 1992, increased 12 percent to $466.0 million from $416.3 million in the same period last year. Net earnings for the quarter were $122 thousand, or breakeven on a per share basis, compared to $1.4 million, or $0.03 per share, for 1991's second quarter.
In announcing the quarterly results, John J. Shea, Spiegel vice chairman, president and CEO, said, "I am encouraged by our second quarter sales performance which reflects strong sales in all divisions. Spiegel Catalog has strengthened its customer base as a result of favorable response to its customer acquisition programs through the first six months. Eddie Bauer has experienced positive same store sales comparisons for the second consecutive quarter and its catalog division also recorded favorable comparisons versus last year." Gross profit margin on net sales declined to 28.1 percent from 32.1 percent in 1991's second quarter. Our aggressive pricing strategy has had a negative impact on margins over the short-term. We anticipate that our expanded customer base will provide opportunity to continue to increase sales and gross profit margins will rebound as our expanded manufacturing division becomes fully operational. Selling, general and administrative expenses declined as a percent to total revenues to 34.6 percent from 36.4 percent in 1991's second quarter as a result of our continuing cost containment efforts. For the six months ended June 30, 1992, net sales and other revenues were $892.0 million, up 3 percent from $864.0 million for the same period last year. Net earnings year-to-date were $1.2 million, or $0.02 per share, compared to $2.4 million, or $0.05 per share, last year. Spiegel Inc. is the dominant multi-channel specialty retailer marketing fashionable apparel and home furnishings to discerning customers through catalogs and over 250 specialty retail stores. Spiegel's businesses include Eddie Bauer, Crayola Kids and For You from Spiegel. SPIEGEL, INC. Financial Highlights (In thousands, except per share amounts) Three Months Ended June 30, 1992 1991 Net sales and other revenues: Net sales $395,982 $358,233 Finance revenue 48,383 44,578 Other revenue 21,679 13,479 Total 465,954 416,290 Cost of sales and operating expenses: Cost of sales, including buying and occupancy 284,653 243,136 Selling, general and administrative expenses 161,305 151,545 Total 445,958 394,681 Operating income 19,996 21,609 Interest expense 19,788 19,245 Earnings before income taxes 208 2,364 Income taxes 86 979 Net earnings $122 $1,385 Net earnings per common share $0.00 $0.03 Average number of common shares outstanding 51,985,197 51,964,897 SPIEGEL, INC. Financial Highlights (In thousands, except per share amounts) Six Months Ended June 30, 1992 1991 Net sales and other revenues: Net sales $760,106 $737,899 Finance revenue 97,673 93,516 Other revenue 34,252 32,559 Total 892,031 863,974 Cost of sales and operating expenses: Cost of sales, including buying and occupancy 543,830 515,386 Selling, general and administrative expenses 307,391 304,114 Total 851,221 819,500 Operating income 40,810 44,474 Interest expense 38,828 40,389 Earnings before income taxes 1,982 4,085 Income taxes 823 1,683 Net earnings $1,159 $2,402 Net earnings per common share $0.02 $0.05 Average number of common shares outstanding 51,983,712 51,961,020 Certain prior year amounts have been reclassified to conform to current presentation. -0- 7/23/92 /CONTACT: Debbie Koopman of Spiegel, 708-769-2596/ (SPGLA) CO: Spiegel Inc. ST: Illinois IN: REA SU: ERN
SM -- NY029 -- 2409 07/23/92 10:41 EDT
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|Date:||Jul 23, 1992|
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