No Summer Sizzle From Sharper Image, Brookstone

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Sales continued to slow in the second quarter for high-tech gadget catalogers Sharper Image Corp. and Brookstone Inc.

Sharper Image, San Francisco, said yesterday that revenues for its fiscal second quarter ended July 31 totaled $137.3 million, down 8 percent from last year. Same-store sales dropped 9 percent for the quarter. Also, catalog/direct marketing sales plummeted 29 percent to $27.5 million. Internet sales totaled $18.4 million, a 10 percent decline.

The company reported a net loss in the second quarter of $6.8 million compared to net earnings of $100,000 last year.

Brookstone, Merrimack, NH, posted a 6.6 percent decline in sales for the second quarter ended July 30 for a total of $87.5 million. Same-store sales dropped 10 percent while direct marketing sales dipped 1.7 percent to $13.1 million. The company reduced its catalog circulation by 10.8 percent during the quarter.

For the 26-week period ended July 30, Brookstone said sales totaled $164.3 million, a 2.2 percent decrease from last year. Same-store sales dropped 7.3 percent while direct marketing sales gained 5.7 percent to $24 million. Catalog circulation rose 4.3 percent during this period.

Brookstone reported a net loss of $5.7 million for the second quarter versus a net loss of $465,000 for Q2 2004.

The second-quarter loss for 2005 includes a write-off of the intangible assets of Gardeners Eden, which the company announced plans to divest in June.

For the 26-week period ended July 30, Brookstone reported a net loss of $12.5 million compared to a net loss of $5.1 million last year.

Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting


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