Eddie Bauer Holdings, Inc. reported overall comps inched ahead 0.5% in the first quarter ended March 28 versus a 9.5% gain in the prior year's quarter. Comparable retail store sales increased by 2.9% on top of a 16.4% increase a year ago. Comparable outlet stores sales declined 3.1% compared to a 0.3% increase in first quarter 2007.
   
Sales from the company's direct channel, which includes internet and catalog sales, increased by 0.3% on top of a 16.3% increase in first quarter 2007.


Preliminary total net merchandise sales (including stores opened and closed in 2008) were $198 million, down $1.7 million from the prior year's first quarter.


Eddie Bauer also affirmed that it remains in compliance with all of its loan covenants for the first quarter. The reailer does not use letters of credit to finance product sourcing.

Neil S. Fiske, president and CEO, said in a statement, “This was a challenging quarter for us, given the overall downturn in retail, our higher starting inventory position, and the restructuring costs we took in the quarter. Overall, I am pleased with our progress and our ability to navigate these challenges. We remain confident in our ability to execute our multi-year turnaround plan.”