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* San Francisco-based Sharper Image Corp. said its losses narrowed in the fiscal second quarter and that improved margins will boost earnings for the second half of 1998. The specialty retailer reported a net loss for the quarter of $1.2 million, or 14 cents per share, versus $1.5 million, or 18 cents, a year earlier. Revenue for the quarter was $49.5 million, compared with $43.3 million in the year-earlier period. Total store sales for the quarter grew 10% to $34.1 million, from $31.1 million in the prior year, while comparable store sales increased 7%.

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