SPIEGEL REPORTS THIRD QUARTER RESULTS
SPIEGEL REPORTS THIRD QUARTER RESULTS DOWNERS GROVE, Ill., Oct. 22 /PRNewswire/ -- Spiegel, Inc.
(NASDAQ-NMS: SPGLA), the nation's largest direct marketer and a leading specialty retailer, today reported total revenues of $457.6 million for the quarter ended Sept. 30, 1992, a 15 percent increase over $399.2 million in the same period last year. Net earnings for the quarter were $1.9 million or $0.04 per share, compared to $1.6 million or $0.03 per share for 1991's third quarter.
For the nine months ended Sept. 30, 1992, total revenues were $1.350 billion, up 7 percent from $1.263 billion for the same period last year. Net earnings year-to-date were $3.0 million, or $0.06 per share, compared to $4.0 million, or $0.08 per share, last year. "Strong sales in each division accounted for the 15 percent revenue increase this quarter," said John J. Shea, Spiegel vice chairman, president and chief executive officer. "Spiegel catalog continues to experience favorable response to its merchandise offerings and customer acquisition programs. Eddie Bauer's sales remain brisk, showing strong comparisons over last year in both its store and catalog divisions," he added. Spiegel's increased emphasis on value pricing is achieving solid results in both sales and new customer acquisitions. "This strategy will continue to help build our customer base and provide a solid foundation for long-term growth, although it has had a negative impact on gross profit margin short-term," stated Shea. The third quarter gross profit margin, as percent to net sales, was 28.8 percent versus 32.2 percent last year. Selling, general and administrative expenses declined as a percent to total revenues to 33.4 percent from 36.2 percent in the third quarter of 1991. Shea noted that, despite increased advertising expenditures, costs were well-leveraged against the company's revenue base. During the third quarter, Eddie Bauer initiated a store remodeling program aimed at enhancing the look and productivity of the stores. Fifty-one of 60 stores scheduled for remodeling were completed in the quarter and the remainder are expected to be finished by early November 1992. Initial response to these stores is very encouraging. "Consumers are expected to remain cautious in their spending throughout the holiday season; however, we are well-positioned in our merchandise offerings, store presentation and pricing strategy to benefit in the fourth quarter," concluded Shea. Spiegel, Inc. is the dominant multichannel specialty retailer marketing fashionable apparel and home furnishings to discerning customers through catalogs and more than 250 specialty retail stores. Spiegel's businesses include Eddie Bauer, Crayola Kids and For Your 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: 1992 1991 1992 1991 Net sales and other revenues: Net sales $398,024 $342,726 $1,158,130 $1,080,625 Finance revenue 38,322 44,898 135,995 138,414 Other revenue 21,270 11,573 55,522 44,132 Total $457,616 $399,197 $1,349,647 $1,263,171 Cost of sales and operating expenses: Cost of sales, including buying & occupancy 283,579 232,206 827,409 747,592 SG&A expenses 152,728 144,643 460,119 448,757 Total $436,307 $376,849 $1,287,528 $1,196,349 Operating income 21,309 22,348 62,119 66,822 Interest expense 17,856 19,698 56,684 60,087 Earnings before income taxes 3,453 2,650 5,435 6,735 Income taxes 1,582 1,094 2,405 2,777 Net earnings $ 1,871 $ 1,556 $ 3,030 $ 3,958 Net earnings per common share $0.04 $0.03 $0.06 $0.08 Average number of common shares outstanding 51,989,287 51,978,457 51,985,584 51,966,896 Certain prior year amounts have been reclassified to conform to current presentation. -0- 10/22/92 /CONTACT: Debbie Koopman of Spiegel, 708-769-2596/ (SPGLA) CO: Spiegel, Inc. ST: Illinois IN: REA SU: ERN
TS -- NY068 -- 3482 10/22/92 11:05 EDT
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|Date:||Oct 22, 1992|
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