As Eddie Bauer Holdings Inc. gears up to reposition itself, the specialty retailer narrowed a third-quarter loss to $16.4 million, or 54 cents a diluted share, from a loss of $197.6 million, or $6.58, in the year-ago period.
Last year’s bottom line was negatively impacted by an asset impairment charge of more than $117 million.
For the three months ended Sept. 29, sales slipped to $210.9 million from $211.3 million last year. Total same-store sales for the quarter rose 3.4 percent.
For the nine-month period, the specialty retailer reported a loss of $83.5 million, or $2.74 a diluted share, which compares to a loss of $275.1 million, or $9.17, in last year’s period. Sales grew 3 percent to $651.9 million from $631.5 million.
“We are moving forward with key brand, merchandising and marketing strategies to improve performance and restore long-term growth, and we are in the process of developing a significant cost reduction plan for 2008,” Neil S. Fiske, president and chief executive officer, said in a statement. “We expect that this plan will result in reductions to our operating cost structure of $25 million to $30 million in 2008.”
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The company also rebuilt its senior management team with the appointment of three new executives, including a new chief financial officer, general counsel and head of sourcing and supply chain.
Shares of Eddie Bauer closed up 3.7 percent to $6.11 on Tuesday.