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SPIEGEL REPORTS STRONG SECOND QUARTER RESULTS NET SALES INCREASE 15 PERCENT

 DOWNERS GROVE, Ill., July 22 /PRNewswire/ -- Spiegel, Inc., the nation's dominant direct marketer and a leading specialty retailer, today reported that total revenues for the second quarter ended June 30, 1993, increased 11 percent to $515.8 million from $466.0 million in the same period last year. Net earnings for the quarter were $4.0 million, or $0.08 per share, compared to $122 thousand, or breakeven on a per share basis, for the second quarter of 1992.
 In announcing the quarterly results, John J. Shea, Spiegel vice chairman, president and chief executive officer said, ``Net sales rose 15 percent in the quarter, driven by an 18 percent increase in comparable store sales at Eddie Bauer and strong catalog sales for both Spiegel and Eddie Bauer. We continue to see strong response to our merchandise offerings in both our catalog and retail store divisions.''
 Spiegel's second quarter gross profit margin on net sales again showed significant improvement increasing to 31.0 percent from 28.1 percent in the second quarter of 1992. This improvement was due to fewer promotional markdowns in the quarter compared to last year.
 For the six months ended June 30, 1993, total revenues were $1.016 billion, up 14 percent from $892.0 million for the same period last year. Net earnings year-to-date were $6.9 million, or $0.13 per share, compared to $1.2 million, or $0.02 per share, before the cumulative effect of accounting changes, in the first six months of 1992.
 ``We are pleased with our net sales growth of 18 percent for the first half of 1993, accompanied by a significant rebound in earnings. This was achieved while maintaining our ratio of selling, general and administrative expenses and growing gross profit margins,'' Shea noted. ``In addition, we are in the midst of our most successful new customer acquisition program ever. This ongoing program, combined with Eddie Bauer store openings and remodels, will enable us to continue aggressively building market share and achieve further growth in the remainder of the year.''
 The company said that Eddie Bauer's store remodeling program, initiated in 1992 with 60 stores, includes plans for 50 additional store remodels this year. The store remodeling program has enhanced the look and productivity of the stores. The 1993 store remodels are expected to be completed by the end of October. In addition, the company said it has increased its plans for store openings in 1993, to 33 from 25. Eddie Bauer currently has 236 retail stores and 34 outlet stores.
 Spiegel, Inc. is the dominant multi-channel specialty retailer marketing fashionable apparel and home furnishings to discerning customers through catalogs and more than 280 specialty retail stores. Spiegel's businesses include Eddie Bauer, Crayola Kids and For You from Spiegel. Spiegel's Class A non-voting common stock trades on the NASDAQ National Market System under the ticker symbol: SPGLA.
 SPIEGEL, INC. FINANCIAL HIGHLIGHTS
 (in thousands, except per share amounts)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 NET SALES AND OTHER REVENUES:
 Net sales $ 454,156 395,892 893,163 760,106
 Finance revenue 46,320 48,383 94,021 97,673
 Other revenue 15,350 21,679 28,925 34,252
 515,826 465,954 1,016,109 892,031
 COST OF SALES AND OPERATING EXPENSES:
 Cost of sales, including
 buying and occupancy 313,552 284,653 619,731 543,830
 Selling, general and
 administrative expenses 178,017 161,305 349,337 307,391
 491,569 445,958 969,068 851,221
 Operating Income 24,257 19,996 47,041 40,810
 Interest Expense 17,236 19,788 34,923 38,828
 Earnings Before Income Taxes
 And Cumulative Effect Of
 Accounting Changes 7,021 208 12,118 1,982
 Income Taxes 3,026 86 5,223 823
 Earnings Before Cumulative
 Effect Of Accounting
 Changes 3,995 122 6,895 1,159
 CUMULATIVE EFFECT OF ACCOUNTING
 CHANGES:
 Postretirement health care
 benefits, net of income
 taxes of $2,554 -- -- -- (3,304)
 Inventory overhead
 capitalization, net of
 income taxes of ($5,725) -- -- -- 7,405
 Net Earnings $3,995 $122 $6,895 $5,260
 Earnings per common share
 before cumulative effect
 of accounting changes $0.08 $0.00 $0.13 $0.02
 CUMULATIVE EFFECT OF ACCOUNTING CHANGES:
 Postretirement health care
 benefits -- -- -- (0.06)
 Inventory overhead
 capitalization -- -- -- 0.14
 Net Earnings Per
 Common Share $0.08 $0.00 $0.13 $0.10
 Average Number Of Common
 Shares Outstanding $52,022,406 $51,985,197 $52,015,883 $51,983,712
 -0- 7/22/93
 /CONTACT: Debbie Koopman, Spiegel, 708-769-2596/
 (SPGL)


CO: Spiegel, Inc. ST: Illinois IN: REA SU: ERN

DH -- NY027 -- 4390 07/22/93 09:59 EDT
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Date:Jul 22, 1993
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