Eddie Bauer Holdings, Inc. reported a net loss of $127.5 million, or $4.13 per share, for the fourth quarter, compared to a net loss of $18.2 million, or 59 cents, a year ago. Adjusted EBITDA decreased to $54.0 million from $59 million for the fourth quarter of 2008.
Total revenues for the quarter decreased 5.7% to $369.9 million. Comparable store sales fell 5.7% for the quarter, excluding the effect of foreign exchange rates resulting from the sharp decline in the Canadian dollar. Gross margins for Q4 declined to 40.9% from 43.8% in the year-ago quarter, as a result of higher markdowns spurred by the overall increase in promotional activity by competitors during the holidays and higher costs related to increases in headcount. The $155.8 million increase in operating loss was primarily driven by $144.6 million of non-cash impairment charges of trademarks ($80 million) and goodwill ($64.6 million) in Q4.
