Spiegel Posts $33M Net Loss for FY97

Share this article:
A fourth-quarter earnings increase of 61 percent over 1996 was not enough to buffer cataloger Spiegel Inc. from a net loss of $33 million, or $0.28 per share, for the fiscal year ended Jan. 3. Total revenues increased 1 percent to $3.1 billion.


Spiegel, Downers Grove, IL, earned $31.9 million or $0.3 per share in the fourth quarter on slightly higher total revenues of $1.1 billion. Comparable-store sales for the company's Eddie Bauer subsidiary declined 8 percent for the quarter and 3 percent for the year. Gross profit margin declined 4.1 percent due to a higher level of markdowns in the quarter for the Eddie Bauer and Spiegel Catalog divisions.


"Spiegel Catalog's difficulties were the single most significant factor in our company's performance,'' said Spiegel CFO James Sievers. "While Eddie Bauer experienced another year of profitability, lower-than-expected sales in Eddie Bauer's high-volume fourth quarter negatively affected our overall results.''


The Spiegel Group's catalog businesses saw a 9.1 percent decline in net sales to $1.5 billion while its retail stores showed a 9.5 percent increase to $1.4 billion. Spiegel opened 65 Eddie Bauer stores in 1997, increasing its retail base to 508 stores.
Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Agency

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Agency

Analytics vs. Instincts

Analytics vs. Instincts

Even for the savviest marketers, finding the right balance of analytics and gut instincts can prove to be difficult.

The Mobile-Email Marriage

The Mobile-Email Marriage

Marketers who considered leaving email at the altar are finding renewed passion for the channel as an ever-increasing number of customers triage, read, and click-through email on their smartphones.

Harnessing Deep Industry Expertise to Capture New Markets

Harnessing Deep Industry Expertise to Capture New Markets

Darren Rodgers explains how he applies his deep healthcare expertise, and broad organizational experience, to marketing in an industry in the throes of historic transformation.