Sharper Image Loss Widens in 3rd Quarter

Sharper Image Corp. said its losses rose sharply in the third quarter as high paper prices forced the retailer of specialty products to curb its catalog advertising, resulting in weaker sales. Net losses widened to $1.7 million, or 20 cents a share, in the quarter ended Oct. 31, from $835,000, or 10 cents, in the year-ago period. Same-store sales, or sales from stores open at least a year, slid 12%, to $24.5 million from $27.7 million. “Advertising expense was 22% lower than last year’s same period, due primarily to fewer catalog pages as well as lower paper prices,” said Chairman Richard Thalheimer. “The planned reduction in advertising had the anticipated effect of lowering sales.” San Francisco-based Sharper Image sells gifts and products through more than 90 stores in the U.S. and overseas, as well as by catalog. Shares rose 12.5 cents to $3.375 on Nasdaq.