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Web boosts Sharper Image
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February 16, 1999: 10:11 a.m. ET
Internet, branded merchandise push retailer to record $1-per-share profits
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NEW YORK (CNNfn) - Technology gift retailer Sharper Image said Tuesday that Internet sales have proven to be very profitable, pushing fourth-quarter sales to a record $110.9 million.
The company, which expanded its online sales presence last month, earned $9.4 million or $1.00 per share in the last three months of 1998, its best quarter ever. In the comparable period of 1997, earnings were $5.8 million or 67 cents per share.
The results exactly matched Wall Street expectations.
Although Sharper Image (SHRP) said that all areas of its business had fueled the advance, Founder, Chairman and Chief Executive Officer Richard Thalheimer singled out the company's new line of "Sharper Image Design" branded products and its e-commerce initiatives.
"Internet growth was spectacular," he said. "A key element in the improved sales and earnings is the popularity of our proprietary products branded 'Sharper Image Design.' . . . They provide our customers with great value, utility and fun; they provide the company with market exclusivity and much higher margins."
The company's total revenue for the quarter climbed 15 percent to $110.9 million from last year's $96.1 million. Internet revenue climbed 243 percent to $3 million of that figure, up from last year's $900,000.
"We will be aggressively expanding our Internet presence in 1999," said Thalheimer. "Our new auction site comes online Feb. 22 (and) we will be substantially expanding our partnership advertising this year, which will drive more traffic to our sites."
For full-year 1998, Sharper Image earned $4.6 million or 51 cents per fully diluted share on revenue of $243.1 million. In the full year previous, the company earned $593,000 or 7 cents per share on revenue of $216.8 million.
Sharper Image shares leapt 1-13/16 at the open Tuesday to trade at 16. 
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Sharper Image
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