Printer Friendly

SPIEGEL REPORTS THIRD QUARTER RESULTS NET SALES INCREASE 22 PERCENT

 DOWNERS GROVE, Ill., Oct. 25 /PRNewswire/ -- Spiegel, Inc. (NASDAQ-NMS: SPGLA), the nation's leading direct marketer and specialty retailer, today reported that total revenues for the third quarter ended Sept. 30, 1993, increased 20 percent to $550.3 million from $457.6 million in the same period last year.
 Spiegel's third quarter 1993 results, which reflect the 100 percent stock dividend, include a one-time charge of $21.9 million aftertax, to provide for necessary expenditures associated with the closing of certain current catalog distribution facilities. Due to this nonrecurring charge, the company recorded a loss of $14.0 million, or $0.13 per share, compared to earnings of $1.9 million, or $0.02 per share for the third quarter of 1992.
 John J. Shea, vice chairman, president and chief executive officer of Spiegel, Inc., commented, "Net sales rose 22 percent in the quarter, driven by a 14 percent increase in Eddie Bauer comparable store sales and strong catalog sales for Spiegel and Eddie Bauer. The sales increase also reflects a slight impact from our newly acquired New Hampton subsidiary. Response to the merchandise offerings in both our catalog and retail store divisions continues to be strong."
 Spiegel's third quarter gross profit margin on net sales rose to 32.3 percent from 28.8 percent in the third quarter of 1992. This improvement was due to fewer promotional markdowns in the quarter compared to last year.
 Selling, general and administrative expenses increased as a percent of total revenues to 34.5 percent. This was due primarily to the effects of the sale of accounts receivable in 1992's third quarter. Also, a planned increase in advertising expenditures which relate to the company's aggressive customer acquisition programs impacted selling, general and administrative expenses.
 For the nine months ended Sept. 30, 1993, total revenues were $1.566 billion, up 16 percent from $1.350 billion for the same period last year. Year-to-date, Spiegel reported a loss of $7.1 million, or $0.07 per share, which includes the nonrecurring charge of $21.9 million aftertax, recognizes in the quarter. This compares to earnings of $3.0 million, or $0.03 per share, before the cumulative effect of accounting changes, in the first nine months of 1992.
 Shea concluded, "I'm pleased with our continuing revenue growth and operating performance strength. Spiegel's results reflect strong customer response to our value pricing strategy and to our aggressive customer acquisition programs."
 Earnings per share for the current and prior periods reflect a 100 percent stock dividend on common stock to holders of record on Oct. 22, 1993, payable on Nov. 2, 1993.
 Spiegel, Inc. is the dominant multi-channel specialty retailer marketing fashionable apparel and home furnishings to discerning customers through catalogs and more than 290 specialty retail stores. Spiegel's businesses include Eddie Bauer, New Hampton, Crayola Kids, E STYLE 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)
 Periods ended Three Months Nine Months
 Sept. 30, 1993 1992 1993 1992
 Net sales and
 other revenues:
 Net sales $485,366 $398,024 $1,378,529 $1,158,130
 Finance revenue 49,702 38,322 143,723 135,995
 Other revenue 15,266 21,270 44,191 55,522
 Total 550,334 457,616 1,566,443 1,349,647
 Cost of sales and
 operating expenses:
 Cost of sales,
 including
 buying and occupancy 328,564 283,579 948,295 827,409
 Selling, general and
 administrative expenses 189,703 152,728 539,040 460,119
 Nonrecurring charge 39,000 - 39,000 -
 Total 557,267 436,307 1,526,335 1,287,528
 Operating income (6,933) 21,309 40,108 62,119
 Interest expense 18,079 17,856 53,002 56,684
 Earnings before income
 taxes and cumulative
 effect of
 accounting changes (25,012) 3,453 (12,894) 5,435
 Income taxes (10,974) 1,582 (5,751) 2,405
 Earnings before cumulative
 effect of accounting
 changes (14,038) 1,871 (7,143) 3,030
 Cumulative effect of
 accounting changes:
 -Postretirement health care
 benefits, net of income
 taxes of $2,554 -- -- -- (3,304)
 -Inventory overhead capita-
 lization, net of income
 taxes of ($5,725) -- -- -- 7,405
 Net Earnings $(14,038) $1,871 $(7,143) $7,131
 Earnings per common
 share before
 cumulative effect of
 accounting changes $(0.13) $0.02 $(0.07) $0.03
 Cumulative effect of
 accounting changes:
 -Postretirement
 health care
 benefits -- -- -- (0.03)
 -Inventory overhead
 capitalization -- -- -- 0.07
 Net earnings
 per common share $(0.13) $0.02 $(0.07) $0.07
 Average number
 of common shares
 outstanding 104,056,992 103,978,574 104,040,268 103,971,168
 NOTE: Average number of common sharers outstanding have been restated to reflect the 100 percent stock dividend declared on Oct. 11, 1993, payable on Nov. 2, 1993, to shareholders of record on Oct. 22, 1993.
 -0- 10/25/93
 /CONTACT: Debbie Koopman of Spiegel, 708-769-2596/


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

SH -- NY075 -- 6372 10/25/93 13:27 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 25, 1993
Words:847
Previous Article:NOBLE AFFILIATES DECLARES DIVIDEND
Next Article:SPIEGEL, INC., FILES OFFERING OF 3,600,000 SHARES OF CLASS A NON-VOTING COMMON STOCK
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters