Struggling Eddie Bauer outlines plan

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Howard Gross, interim CEO of Eddie Bauer Holdings, Inc. (Nasdaq: EBHI), outlined initiatives in a Tuesday conference call after the close of trading that he said will position the struggling company toward consistent profitability.

Gross named seven plans for the company’s future:
• Leveraging Eddie Bauer’s “unique outdoor heritage”

• Implementing back-to-basics merchandising

• Focusing on the company’s core 30- 54-year-old customer

• Expanding and exploiting its outerwear market position

• More product-specific, rather than wardrobe, marketing

• Continuing with rollout of loyalty program. Gross said the company has over 1.1 million customers enrolled.

• Pursue selected brand marketing and advertising

While reticent to provide guidance to investors, Gross said the Redmond, Wash.-based company planned to open 21 new retail stores and eight outlet stores in 2007. However, Gross said the company also plans to close 29 retail stores and 1 outlet store.

Eddie Bauer this afternoon said revenues were up 10% to $214 million in the first quarter ended March 31, from $194.5 million a year earlier. The company, founded in 1920, reported a first-quarter loss of $44.8 million, or $1.47 a share, compared with a loss of $35.6 million, or $1.19 a share, in the first quarter of 2006. Shares in the clothing retailer have ranged between $6.50 and $13.41 over the last 52 weeks.

The company’s profits were hurt by one-time expenses relating to the firing of the former CEO, legal fees relating to a proposed sale, and $1.6 million resulting from a California class action lawsuit against the company.

The company’s share fell $0.26 to $12.71 during regular hours trading. In after-hours trading, the stock lost $0.02 to stand at $12.69.

Eddie Bauer was bought by Spiegel, Inc. in 1988, but Spiegel went bankrupt in 2003. Spiegel emerged from bankruptcy in 2005, under the name Eddie Bauer Holdings.