Eddie Bauer shares surge on 2Q results

Shares of Eddie Bauer Holdings Inc. advanced on Friday, after the apparel retailer said it posted a narrower loss and its same-store sales rose in the second quarter amid a turnaround plan.

The stock gained $1.12, or 21.6 percent, to $6.31 during morning trading. The shares have traded between $2.91 and $11.19 during the past 52 weeks.

After the closing bell Thursday, the company reported losses for the quarter ended June 28 shrank to $70,000, or break even per share, from a loss of $22.2 million, or 73 cents per share last year.

Revenue rose 3 percent to $233 million from $227 million last year.

The company reported sales in stores open at least one year, a key retail metric known as same-store sales, increased 8.6 percent during the quarter.

Neil Fiske, who became chief executive last year, has been working to turn the company around, including revamping merchandise and cutting costs.

In a statement, Fiske said higher sales, a smaller net loss, lower inventory and expenses are "tangible" results the turnaround plan is working.

"Still, we reiterate that this is a multi-year turnaround effort and that the external environment for the remainder of 2008 requires caution," he said.