The company will introduce 50 to 60 new products a month in a wide range of price points, even through the summer selling season, said senior executives at the second conference call in 30 days to discuss first-quarter sales. In addition, the merchandise mix is more likely than in the past to appeal to women and children.

"We had not really had a significant change in merchandising in the last three years," said Richard Thalheimer, Sharper Image founder and CEO. "Now, the stores are starting to look different every day."

In recent years, the retailer had focused largely on Ionic Breeze air purifiers and massage chairs. Recent sales results reflected market saturation and greater competition in those segments, he said. Total company revenues for the quarter ended April 30, 2006, were $106.8 million compared to $144.9 million in 2005, a decrease of 26%. Comparable store sales declined 29%. Sharper Image reported a net loss of $12.6 million for the quarter versus a loss of $4.6 million in 2005.