Spiegel's Sales Drop

The Spiegel Group (Downers Grove, Ill.), in bankruptcy protection since April, reported an 11 percent decrease in net sales net sales for the four weeks ended May 24, 2003.

For the 21 weeks ended May 24, 2003, net sales declined 22 percent.

Same-store sales for its Eddie Bauer division decreased 1 percent for the four weeks and 9 percent for the 21-week period. The company said Eddie Bauer retail sales reflected strong customer response to its women's apparel offer, offset by weakness in its men's apparel offer and the home division.

Net sales for May include $25.5 million in liquidation sales resulting from the sale and transfer of inventory to an independent liquidator in conjunction with the closing of 81 stores. The liquidator is conducting store-closing inventory sales as part of the plan to close 60 Eddie Bauer retail and outlet stores, 16 Spiegel outlet and clearance stores and five Newport News outlet stores. Excluding the liquidation sales, the Group's net sales from retail and outlet stores fell 6 percent compared to last year, reflecting a decline in same-store sales and fewer stores compared to last year. Direct net sales (catalog and e-commerce) decreased 41 percent compared to last year, primarily due to lower customer demand and a planned reduction in catalog circulation.