sharper image: not so picture perfect - large room air purifier

Retailers may need more than ion Breeze air purifiers to crack down on tough sales comparisons in the past. NEW YORK (CNN/Money)-
So far, a clear image has been the darling of analysts and investors.
But there are signs that enthusiasm is weakening for this specialty gadget and gadget retailer.
Although some industry observers believe San Francisco
Others say the real test is just beginning.
"Sales in September were impressive.
I have been reminding people of this for months.
In addition, there is no necessary
There are products from the company this year, "said Gary Holdsworth, analyst at Wedbush Morgan Securities. Sharper Image (
Research, estimation)
Second fiscal report last month
Its stores open for at least one year in quarterly sales-
A key retail measure is also called the samestore sales --
Up 15%.
Total store sales during this period increased by 27% over last year, and the company strengthened its guidance throughout the year.
The company's revenue for the fiscal year 2003 increased by 31% over the previous year.
Its shares are also experiencing a bull market, up 51% so far this year.
This year's price-earnings ratio is 22 times, and its trading is slightly premium compared to the price-earnings ratio of 19 for professional retail. 1.
The problem is: According to Perkins, sales have become difficult for retailers compared to 2002, despite the slowdown that began at the end of this year. "Same-
"Store sales grew by 37% in September 2002," said Ken Perkins, a research analyst at Thomson finance . ".
"Sales grew 23% in last October and 15% in November. [
After an increase of 8% in December
Once again, sales in January rose 37%.
"Some investors seem to be scared by the hard data. Short-
Interest activity in Sharper Image stock is on the rise at 12.
2% of the total number of shares traded.
This is the fourth one.
Highest level in a year
J. analyst Brian Tunick said: "With the company's difficult sales comparison at the beginning of the anniversary, investors are looking forward to the holiday, and many retail investors have a clearer image on their radar screens . "P. Morgan.
Short sellers usually borrow shares and sell them, hoping to buy back shares and make profits when they fall.
"The business will slow down," said Tunick.
No one expects the company to maintain strong momentum throughout the year.
However, investors should look at the sales figures for two months. year basis.
Sales fell 40% in September 2001.
As a result, the company can still announce positive values in the third and fourth quarters.
Tunick has a "overweight" rating on stocks.
Sharper Image's ion breeze mute air purifier is listed as the best air purifier on the company's website
Products sold this year, as well as other gadgets such as The iJoy robot massage chair and nose --hair Turbo-Groomer.
The company will not disclose sales figures for individual products, but Jeff Forgan, the company's chief financial officer, said Ionic Breeze was the best-selling product.
Our family and portable stereo system, CD alarm clock and desk
Top fans also sell well . "
Rob Wilson, an analyst at Tiburon Research, estimates that ion Breeze air purifiers account for 35-40% of the company's total sales.
This makes sales of Sharper Image too dependent on a product, he said, and if the cottage product is flooded with the market, it is easy to have a shortage of sales.
Wilson has a "sales" rating for a clearer image.
According to Wilson, private-controlled HoMedics Inc.
, Manufacturer of dental appliances, foot bath and relaxation products, working with quality Belmonte. -
Advanced technology based on Kronos (
Research, estimation)
As early as next year, a series of air filtration products similar to ion Breeze air purifiers will be manufactured and distributed.
Klonos of HoMedics did not respond to comment.
"The clearer images are really high.
But consumers may choose products of lower quality.
More widely priced versions, such as at Wal-Mart
"Wal-Mart or other commodities," said Wilson.
Sharper Image's products are sold only through its 130 retail stores, catalogues and websites.
In addition, the consumer report magazine published a negative test report on ion Breeze products for the second time in two years, criticizing the lack of speed and air volume.
Analysts warned that bad publicity could keep consumers away from the product.
The company sued the parent Consumer Union of Consumer Reports this month, claiming the magazine issued false and misleading statements about its ion Breeze Quadra air purifier.
However, Forgan said the competition did not upset the company.
"Honeywell, Panasonic, Hoover have these [air filtration]
The product has been in existence for several years . "
"We are well aware of the fact that other marketers sell similar products.
We have demonstrated our momentum in the product line.
Our products have a wide range of appeal to different income groups.
"Forgan declined to comment on the matter
Stock sales activity for Sharper Image. --
Analysts cited in the report do not personally own shares in Sharper Image.
In some cases, their company does have an investment bank relationship with the company.