Eddie Bauer Widens Quarterly Loss

Amid rumors of the possible sale of the company, Eddie Bauer ( EBHI) more than doubled its loss in the first quarter, hurt by slushy sales and gross margins.

Bloomberg News reported last week that the company is in talks with potential buyers, including Gordon Brothers, Hilco Consumer Capital and Hudson Capital Partners.

But shares of the company soared in late-day trading, up 16% to 64 cents, and continued to rise in after-market trading.

During the quarter, the company recorded a loss of $44.5 million, or $1.44 a share.

Sales dropped 16% to $179.8 million from $213.2 million

"The first quarter was a difficult one, as the sharp downturn in the economy took its toll on our sales," President and CEO Neil Fiske said in a rather understated statement. "We continued to focus on cost cutting and cash-flow management, which helped mitigate the impact of lower sales."

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

More from Earnings

Walmart Snags Top Spot on Fortune 500 List for Sixth-Straight Year

Walmart Snags Top Spot on Fortune 500 List for Sixth-Straight Year

Listen: Should You Buy Cisco Now?

Listen: Should You Buy Cisco Now?

Week Ahead: Investors Keep Economy in Check as Trade, North Korea Talks in Limbo

Week Ahead: Investors Keep Economy in Check as Trade, North Korea Talks in Limbo

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

J.C. Penney Gets Obliterated After Issuing Weak Outlook

J.C. Penney Gets Obliterated After Issuing Weak Outlook