Eagle Hardware Posts Records For Sales, Profit

The closure of competing Ernst Hardware and a strong economy spurred record sales and profit for Eagle Hardware & Garden during its first quarter ended May 2.

Profit increased 55 percent to $4.6 million, or 16 cents a share, from $2.96 million, or 13 cents a share, a year earlier. Analysts had predicted profit of about 15 cents a share.

The earnings included a $2.1 million after-tax charge, equivalent to 5 cents a share, for store preopening costs; there was no such charge in the corresponding period last year.

Eagle also had 26 percent more outstanding shares during the quarter as a result of a 5.75 million share, $125 million stock offering completed in September.

Same-store sales soared 18 percent while overall sales were up 37 percent to $221.1 million, from $161.1 million, in the same period of 1996. That's in spite of increasing pressure from Home Depot, which also has increased its market presence in the Northwest.

Eagle opened three stores during the quarter, in North Seattle, Tacoma and Kahului, Maui. It operates 30 warehouse home-improvement centers in Western states and Alaska.

Richard Takata, Eagle president, credited the increases to a continuing strong economy in its primary markets, along with the closure of the bankrupt Ernst Hardware.

Eagle stock was up 81.25 cents to $23.75 in late trading today.