Eddie Bauer Holdings Inc. (Seattle) reported its fourth-quarter revenue declined 6 percent to $369.9 million from $392.4 million a year earlier. The retailer’s same-store sales also dropped, falling 5.7 percent during the quarter.
Chief executive Neil Fiske says the company's results were hurt by a more promotional retail environment prompted by the economic downturn.
For the year, Eddie Bauer says annual sales dipped 2 percent to $1.02 billion from $1.04 billion.
The tough economic climate has also put Eddie Bauer in jeopardy of violating the consolidated secured leverage ratio on its term loan. The company said it will try to amend the agreement so that it can sidestep a "going concern" opinion from its accountants, referring to the company's ability to continue to operate indefinitely. "While the amendment we are seeking is expensive, it will give us a new level of covenants with considerably more room on the downside through the first quarter of 2010," Fiske said.
In January, the outdoor apparel and lifestyle retailer says it would cut 193 jobs, or 15 percent of its non-retail staff, due to the economic downturn, and reduce its board to seven members from 10 members.