MERRIMACK, N.H.–Brookstone reported a net loss of $8.7 million in the second quarter, compared with a net loss of $6.5 million for the second quarter of 2007.
Net sales for the lifestyle specialty retailer declined 2.5 percent to $97.4 million in the quarter, including a 4.3 percent decrease in same-store sales. In a company statement, Lou Mancini, chief executive officer, said Brookstone’s sales were depressed due to reduced traffic in the malls where the stores are located, and by the liquidation sales that are taking place at Sharper Image, Brookstone’s closest competitor.
The company’s loss from operations more than doubled in the quarter, to $7.7 million, because of the sales drop and because of a 7 percent rise in selling, general and administrative expenses.
Mancini also said Sharper Image’s exit will be “a significant opportunity” for Brookstone to increase market share through product introductions.