The Spiegel Group reported net sales of $157.8 million for the five weeks ended March 29, a 28% decrease from $217.8 million for the same period last year.
For the 13 weeks ended March 29, net sales declined 23% to $413.6 million from $537.0 million in March 2002.
Comparable-store sales for the company’s Eddie Bauer division decreased 14% for the five-week period and 10% for the 13-week period.
Net catalog and e-commerce sales decreased 36%compared to last year, primarily due to lower customer demand and a planned reduction in catalog circulation. The group’s net sales from retail and outlet stores fell 15 % compared to last year, reflecting a decline in comparable-store sales and a reduction in the number of stores.
In a statement, Spiegel noted that direct — and to a lesser extent store — sales were adversely impacted by the company’s decision in early March to cease honoring the private-label credit cards issued by First Consumers National Bank to customers of its Eddie Bauer, Newport News and Spiegel Catalog brands. The company is actively seeking a third-party credit provider to finance and service receivables generated from a new private label card.
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