Despite a 17% March sales increase, Sharper Image Corp. expects to suffer a first-quarter operating loss ranging from 22 cents to 27 cents per share.
"While we are encouraged by the sales results during this difficult economic climate, they were below our expectations," said CEO Richard Thalheimer in a statement. "Without the higher sales, our advertising expenditures and existing infrastructure costs represent a greater proportion of our revenue than we had planned."
However, Thalheimer continued that the firm remains committed to its long-term strategy, and that this should produce "excellent financial results over time."
The San Francisco-based retailer generated sales of $23 million in March, compared with $19.8 million during the same period last year. The firm's catalog unit did particularly well, generating a 45% sales increase to $6.3 million. Internet sales rose by 20% to $3.4 million.
Thalheimer attributed a 1% decline in comparable store sales to "the prior year's exceptional scooter performance." When scooter sales were removed from the calculation, "comparable store sales increased four percent and total store sales increased 11 percent," Thalheimer said.
Year-to-date sales increased by 13% to $43 million. Catalog sales rose by 37% to $10.7 million, and Internet sales went up by 15% to $6.3 million.
