Human Capital & Careers

Sharper Image to Restate Results

The company will take a non-cash charge for adjustments related to past options grants.
Stephen TaubSeptember 18, 2006

Officials at specialty retailer Sharper Image said the company will restate its financials for its three fiscal years ended January 31, 2006 and the fiscal quarters ended April 30, 2006 and 2005. The adjustment will reflect a pre-tax non-cash compensation charge stemming from earlier options grants, added the company.

The retailer said it would record a pre-tax non-cash compensation charge of roughly $15 million from fiscal 1998 through 2006. Of this amount, the company estimates that about $11 million relates to options granted in fiscal 1998 and 1999.

The company also said it will delay its filing of its quarterly report for the period ended July 31, 2006. As reported, earlier this month Sharper Image announced that its board had launched an independent review of the company’s historical stock-option practices and related accounting matters.