New CEO named at Eddie Bauer

By Kevin Bell
Bloomberg News

Eddie Bauer Holdings appointed Limited Brands executive Neil Fiske as its chief executive officer.

Fiske takes over July 9, the Redmond-based outdoor-clothing maker said Friday. Director Howard Gross has been interim chief since investors voted down a $285 million buyout offer in February, prompting Fabian Månsson to give up the post.

Fiske was most recently the CEO of Limited Brands' Bath & Body Works unit.

He "looks like a great fit," said Nick Capuano, an analyst with Imperial Capital in Los Angeles. "Limited is known as a breeding ground for good managers, and he's done an excellent job. He's a star there."

Since 2003, Eddie Bauer failed twice to sell itself. It filed for bankruptcy protection that year, and tried to find a buyer before emerging from court protection in 2005 as an independent company.

Fiske, 45, said he plans to expand Eddie Bauer's business at a "sustainable" rate. He helped to turn around two years of same-store sales declines at Bath & Body Works, according to the statement.

Shares of Eddie Bauer rose 21 cents, or 1.5 percent, to $13.98 Friday.

Eddie Bauer reported sales at stores open at least a year rose 9.5 percent in the first quarter after declines in three of the previous four quarters. It reported a net loss of $44.8 million, or $1.47 a share — its fourth loss in five quarters — on sales of $214 million.

The gain in same-store sales shows the company is attracting customers with its traditional outdoor clothes, Capuano said. A merchandising strategy in 2005 misfired when it tried to attract younger customers with more fashion-oriented apparel, he said. [via]