- SPIEGEL SINKS:
Reorganization costs stemming from its bankruptcy proceedings pushed the The Spiegel Group Inc. deeper into the red in the second quarter. For the three months ended June 28, the Downers Grove, Ill.-based Eddie Bauer parent reported a net loss of $146.6 million, or $1.11 a diluted share. By comparison, last year the company had a loss of $56.1 million, or 42 cents. Reorganization items of $84.4 million, including those for the closure of 80 Eddie Bauer retail and outlet stores, accounted for the bulk of the loss. Net revenues for the period fell 21.9 percent to $472.9 million from $605.6 million a year ago. For the first half of the fiscal year, Spiegel recorded a net loss of $277.5 million, or $2.10, versus a loss of $99.4 million, or 75 cents, a year ago. Reorganization items contributed a net of $98.4 million to the loss. Revenues for the six months fell 25.9 percent to $906.3 million from $1.22 billion last year.
High-flying Hot Topic declared 3-for-2 stock split in the form of a 50 percent stock dividend payable on Sept. 2 to shareholders of record Aug. 21. Fractional shares shall be converted into cash based upon Hot Topic’s closing price on the Nasdaq on the distribution date.
This story first appeared in the August 13, 2003 issue of WWD. Subscribe Today.