SPIEGEL EARNINGS INCREASE BY 63% IN SECOND QUARTER

DOWNERS GROVE, Ill. — Spiegel Inc. reported second quarter earnings jumped 63 percent to $6.5 million, or 6 cents a share, from $4 million, or 4 cents, a year ago.
John J. Shea, vice chairman, president and chief executive officer, said total sales rose 32.3 percent, with casual, unstructured apparel, private label goods and home products particularly strong. The Eddie Bauer division said same-store sales were up 13 percent.
In the quarter ended July 2, total revenues, including credit card income, climbed 30.9 percent to $675.1 million from $515.8 million.
Gross profit as a percentage of sales increased to 34.6 percent from 31 percent due to fewer markdowns.
Selling, general and administrative expenses rose to 37.1 percent of sales from 34.5 percent last year, reflecting increased incremental expenditures to acquire new catalog customers and costs from introducing a credit card program to its New Hampton catalog customers. In the half, earnings nearly doubled to $13 million, or 12 cents, from $6.9 million, or 7 cents. Net sales jumped 28.7 percent to $1.1 billion from $893 million. Total revenues rose 27.7 percent to $1.3 billion from $1 billion.
— Fairchild News Service

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