Thursday September 3, 7:34 am Eastern Time
Company Press Release
Sharper Image Catalog Sales Increase 41
Percent
Sales From sharperimage.com Increased Three-Fold
SAN FRANCISCO--(BUSINESS WIRE)--Sept. 3, 1998--Sharper Image Corp. (NASDAQ:SHRP - news) today reported a
7 percent sales increase for August driven by a 42 percent increase in mail-order sales from The Sharper Image and The
Sharper Image Home Collection catalogs and a 227 percent increase in sales from the company's Internet site
sharperimage.com.
For August, total company sales of $13.6 million were 7 percent higher than the prior year's $12.8 million. Total store sales
decreased 3 percent, to $9.6 million from $9.9 million in the prior year, with comparable stores sales decreasing 2 percent.
Catalog sales increased 42 percent to $4.0 million from last year's $2.8 million.
''Our sales in August were adversely affected, in part, by insufficient inventory of certain best-selling products from
overseas,'' Richard Thalheimer, founder, chairman and chief executive officer noted.
''This was due in large part to shipping constraints, including a shortage of available cargo containers due to decreased
exports to, and increased imports from, Asia. Additionally, unexpected high demand for some of our most popular items
outpaced our ability to produce them.''
He further stated, ''We continue to be encouraged by the response to our Sharper Image Design and proprietary products. I
believe the Ionic Breeze(TM) Silent Air Purifier, which we introduced in our current catalog, is another breakthrough
product.
''It's the first quality air purifier that circulates air and provides state-of-the-art cleaning while operating in total silence. The
Ionic Breeze is just one of many new exciting products, developed by our Sharper Image Design team, that will be
introduced over the next few months.
''Internet sales in August increased three-fold from last year. Our customers continued their very strong response to both our
sharperimage.com web site and our targeted outbound e-mail marketing,'' Thalheimer concluded.
For the seven months year to date, total company sales grew 11 percent, to $102.1 million from last year's $91.6 million.
Total store sales were 5 percent higher at $70.2 million from $66.7 million for the prior year, with comparable store sales
increasing 4 percent. Catalog sales rose 28 percent to $31.9 million from last year's $25.0 million.
The Sharper Image is a specialty retailer that is nationally and internationally renowned as a leading source of new,
innovative, high-quality products that make life easier and more enjoyable. A significant and growing proportion of sales are
of proprietary products created by the company's product development group, Sharper Image Design.
The company operates more than 80 stores throughout the United States and mails millions of its award-winning catalogs
each month. Additionally, all the company's products may be purchased on-line via its Internet store at sharperimage.com.
This release contains certain forward-looking statements regarding the Company's expected performance for future periods,
and actual results for such periods may materially differ. Such forward-looking statements involve risks and uncertainties,
including risks of changing market conditions in the overall economy and the retail industry, consumer demand, the opening
of new stores, actual advertising expenditures by the Company, the success of the Company's advertising and
merchandising strategy, availability of products, and other factors detailed from time to time in the Company's annual and
other reports filed with the Securities and Exchange Commission.
Contact:
The Sharper Image, San Francisco
Tracy Wan, 415/445-6120
sharperimage.com
or
The Investor Relations Company, Chicago
Tom Laughran, 847/564-5610 |
