SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
[ X ] Annual report pursuant to Section 15(d) of the Securities Exchange Act
of 1934 for the calendar year ended December 31, 1996 or
[ ] Transition report pursuant to Section 15(d) of the Securities
Exchange Act of 1934 for the transition period from ________________ to
______________
Commission File Number: 33-80504
A. Full title of the Plan and the address of the Plan, if different
from that of the issuer named below:
The Sharper Image 401k Savings Plan
650 Davis Street
San Francisco, CA 94111
B. Name of issuer of the securities held pursuant to the Plan and
the address of its principal executive office:
Sharper Image Corporation
650 Davis Street
San Francisco, CA 94111
1
<PAGE>
THE SHARPER IMAGE
401k SAVINGS PLAN
Financial Statements for the years ended
December 31, 1996 and 1995, Supplemental
Schedules for the year ended December 31,
1996 and Independent Auditors' Report
2
<PAGE>
THE SHARPER IMAGE
401k SAVINGS PLAN
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Page
----
INDEPENDENT AUDITORS' REPORT 4
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Benefits,
With Fund Information as of December 31, 1996 and 1995 5-6
Statements of Changes in Net Assets Available for
Benefits, With Fund Information for the years ended
December 31, 1996 and 1995 7-8
Notes to Financial Statements 9-12
SUPPLEMENTAL SCHEDULES:
Item 27a - Supplemental Schedule of Assets Held
for Investment Purposes as of December 31, 1996 13
Item 27d - Supplemental Schedule of Reportable
Transactions for year ended December 31, 1996 14
OTHER INFORMATION:
Exhibit 23.1 - Independent Auditors' Consent 16
3
<PAGE>
INDEPENDENT AUDITORS' REPORT
Administrative Committee,
The Sharper Image 401k Savings Plan
San Francisco, California
We have audited the accompanying statements of net assets available for
benefits of The Sharper Image 401k Savings Plan (the "Plan") as of December 31,
1996 and 1995, and the related statements of changes in net assets available for
benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan as of December 31,
1996 and 1995, and the changes in net assets available for benefits for the
years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplement schedules listed in
the table of contents are presented for the purpose of additional analysis and
are not a required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The fund information in the statements of net assets available for
benefits and the statements of changes in net assets available for benefits are
presented for the purpose of additional analysis rather than to present the net
assets available for benefits and changes in net assets available for benefits
of each funds. These supplemental schedules and fund information are the
responsibility of the Plan's management. Such supplemental schedules and fund
information have been subjected to the auditing procedures applied in our audits
of the basic financial statements and, in our opinion, are fairly stated in all
material respects when considered in relation to the basic financial statements
taken as a whole.
June 12, 1997
4
<PAGE>
<TABLE>
THE SHARPER IMAGE
401k SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1996
- ----------------------------------------------------------------------------------------------------
<CAPTION>
Compass Compass Compass
Compass Capital Capital Capital
Capital Growth Index Inter.
Balanced Equity Equity Govt. Bond
Fund Fund Fund Fund
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Investments at Fair Value:
Fixed-Income Securities $ 368,136
Equity Securities $ 488,517 $ 255,603
Government Securities $ 45,267
Money Market Fund
Common Stock
Participant Loans
---------- ---------- ------------ -----------
Total Investments at Fair Value 368,136 488,517 255,603 45,267
---------- ---------- ------------ -----------
Receivables:
Employee Contributions 7,744 11,408 7,737 1,211
Employer Contribution 15,041 20,239 12,459 3,162
---------- ---------- ------------ -----------
22,785 31,647 20,196 4,373
---------- ---------- ------------ -----------
Liabilities-Excess Contributions (2,765) (8,116) (5,310) (272)
---------- ---------- ------------ -----------
Net Assets Available for Benefits $ 388,156 $ 512,048 $ 270,489 $ 49,368
============ ========== =========== ==========
Compass
Capital Sharper Image
Money Corporation
Market Common Stock Participant
Fund Fund Loans Total
---------- ------------ ------------ -------
Investments at Fair Value:
Fixed-Income Securities $ 368,136
Equity Securities 744,120
Government Securities 45,267
Money Market Fund $ 569,953 569,953
Common Stock $ 42,558 42,558
Participant Loans $ 59,845 59,845
--------- ---------- ---------- ---------
Total Investments at Fair Value 569,953 42,558 59,845 1,829,879
--------- ---------- ---------- ---------
Receivables:
Employee Contributions 10,808 1,744 40,652
Employer Contribution 26,356 4,070 81,372
--------- ---------- ---------- ---------
37,164 5,814 - 121,979
--------- ---------- ---------- ---------
Liabilities-Excess Contributions (1,211) (451) - (18,125)
--------- ---------- ---------- ---------
Net Assets Available for Benefits $ 605,906 $ 47,921 $ 59,845 $1,933,733
========== ============ ========== ==========
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
5
<PAGE>
<TABLE>
THE SHARPER IMAGE
401k SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1995
- ----------------------------------------------------------------------------------------------------
Compass Compass Compass
Compass Capital Capital Capital
Capital Growth Index Inter.
Balanced Equity Equity Govt. Bond
Fund Fund Fund Fund
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Investments at Fair Value:
Fixed-Income Securities $ 200,439
Equity Securities $ 272,785 $ 92,189
Government Securities $ 31,483
Money Market Fund
Common Stock
Participant Loans
----------- ---------- ----------- -----------
Total Investments at Fair Value 200,439 272,785 92,189 31,483
----------- ---------- ----------- -----------
Receivables:
Employee Contributions 6,032 7,912 3,769 1,199
Employer Contribution 12,872 16,860 7,744 3,083
----------- ---------- ----------- -----------
18,904 24,772 11,513 4,282
----------- ---------- ----------- -----------
Liabilities-Excess Contributions (2,017) (2,792) (2,879) -
----------- ---------- ----------- -----------
Net Assets Available for Benefits $ 217,326 $ 294,765 $ 100,823 $ 35,765
============ ========== =========== ==========
Compass
Capital Sharper Image
Money Corporation
Market Common Stock Participant
Fund Fund Loans Total
---------- ------------ ------------ -------
Investments at Fair Value:
Fixed-Income Securities $ 200,439
Equity Securities 364,974
Government Securities 31,483
Money Market Fund $ 446,943 446,943
Common Stock $ 30,495 30,495
Participant Loans $ 18,741 18,741
--------- ---------- ---------- ---------
Total Investments at Fair Value 446,943 30,495 18,741 1,093,075
--------- ---------- ---------- ---------
Receivables:
Employee Contributions 11,307 1,343 31,562
Employer Contribution 34,806 3,432 78,797
--------- ---------- ---------- ---------
46,113 4,775 - 110,359
--------- ---------- ---------- ---------
Liabilities-Excess Contributions (3,288) (661) - (11,637)
--------- ---------- ---------- ---------
Net Assets Available for Benefits $ 489,768 $ 34,609 $ 18,741 $1,191,797
========== ============ ========== ==========
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
6
<PAGE>
<TABLE>
THE SHARPER IMAGE
401k SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1996
- ---------------------------------------------------------------------------------------------------------
<CAPTION>
Compass Compass Compass
Compass Capital Capital Capital
Capital Growth Index Inter.
Balanced Equity Equity Govt. Bond
Fund Fund Fund Fund
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment income (loss):
Net appreciation (depreciation)
in fair value of investments $ 23,240 $ 46,376 $ 23,174 $ (475)
Interest and dividend income 21,012 24,504 14,108 2,131
---------- ---------- ----------- ----------
Total investment income (loss) 44,252 70,880 37,282 1,656
Employer contributions 15,041 20,239 12,459 3,162
Employee contributions 134,112 183,088 105,169 23,331
---------- ---------- ----------- ----------
Total additions 193,405 274,207 154,910 28,149
---------- ---------- ----------- ----------
DEDUCTIONS FROM NET ASSETS:
Benefits paid to terminated participants (27,834) (47,387) (16,941) (8,278)
Administrative expenses (Note 1)
---------- ---------- ----------- ----------
Total deductions (27,834) (47,387) (16,941) (8,278)
---------- ---------- ----------- ----------
NET INCREASE (DECREASE)
BEFORE INTERFUND TRANSFERS 165,571 226,820 137,969 19,871
NET INTERFUND TRANSFERS 5,259 (9,537) 31,697 (6,268)
---------- ---------- ----------- ----------
NET INCREASE 170,830 217,283 169,666 13,603
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 217,326 294,765 100,823 35,765
---------- ---------- ----------- ----------
End of year $ 388,156 $ 512,048 $ 270,489 $ 49,368
========== ========== =========== ==========
Compass
Capital Sharper Image
Money Corporation
Market Common Stock Participant
Fund Fund Loans Total
---------- ------------ ----- ---------
ADDITIONS TO NET ASSETS:
Investment income (loss):
Net appreciation (depreciation)
in fair value of investments $ (11,067) $ 81,248
Interest and dividend income $ 28,648 31 90,434
---------- --------- ---------
Total investment income (loss) 28,648 (11,036) 171,682
Employer contributions 26,356 4,070 81,327
Employee contributions 205,682 25,582 676,964
---------- --------- ---------
Total additions 260,686 18,616 929,973
---------- --------- ---------
DEDUCTIONS FROM NET ASSETS:
Benefits paid to terminated participants (64,156) (2,601) $ (1,944) (169,141)
Administrative expenses (Note 1) (18,896) (18,896)
---------- --------- ----------- ----------
Total deductions (83,052) (2,601) (1,944) (188,037)
---------- --------- ----------- ----------
NET INCREASE (DECREASE)
BEFORE INTERFUND TRANSFERS 177,634 16,015 (1,944) 741,936
NET INTERFUND TRANSFERS (61,496) (2,703) 43,048 -
---------- --------- ----------- ----------
NET INCREASE 116,138 13,312 41,104 741,936
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 489,768 34,609 18,741 1,191,797
---------- --------- ----------- ----------
End of year $ 605,906 $ 47,921 $ 59,845 $1,933,733
========== ========= =========== ==========
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
7
<PAGE>
<TABLE>
THE SHARPER IMAGE
401k SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------------------------------
<CAPTION>
Compass Compass Compass
Compass Capital Capital Capital
Capital Growth Index Inter.
Balanced Equity Equity Govt. Bond
Fund Fund Fund Fund
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment income (loss):
Net appreciation (depreciation)
in fair value of investments $ 24,768 $ 39,820 $ 2,457 $ 1,213
Interest and dividend income 6,578 8,707 12,827 1,167
---------- ---------- ---------- ----------
Total investment income (loss) 31,346 48,527 15,284 2,380
Employer contributions 12,872 16,860 7,744 3,083
Employee contributions 109,860 149,756 54,273 17,997
---------- ---------- ---------- ----------
Total additions 154,078 215,143 77,301 23,460
---------- ---------- ---------- ----------
DEDUCTIONS FROM NET ASSETS:
Benefits paid to terminated participants (11,132) (27,543) (6,597) (1,463)
---------- ---------- ---------- ----------
Total deductions (11,132) (27,543) (6,597) (1,463)
---------- ---------- ---------- ----------
NET INCREASE (DECREASE)
BEFORE INTERFUND TRANSFERS 142,946 187,600 70,704 21,997
NET INTERFUND TRANSFERS (1,301) 13,872 10,721 2,182
---------- ---------- ---------- ----------
NET INCREASE 141,645 201,472 81,425 24,179
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 75,681 93,293 19,398 11,586
---------- ---------- ---------- ----------
End of year $ 217,326 $ 294,765 $ 100,823 $ 35,765
========== ========== ========== ==========
Compass
Capital Sharper Image
Money Corporation
Market Common Stock Participant
Fund Fund Loans Total
---------- ------------ ----- ---------
ADDITIONS TO NET ASSETS:
Investment income (loss):
Net appreciation (depreciation)
in fair value of investments $ (2,857) $ 65,401
Interest and dividend income $ 21,766 27 51,072
---------- --------- ----------
Total investment income (loss) 21,766 (2,830) 116,473
Employer contributions 34,806 3,432 78,797
Employee contributions 281,726 18,390 632,002
---------- --------- ----------
Total additions 338,298 18,992 827,272
---------- --------- ----------
DEDUCTIONS FROM NET ASSETS:
Benefits paid to terminated participants (70,704) (2,946) $ (1,822) (122,207)
---------- --------- --------- ----------
Total deductions (70,704) (2,946) (1,822) (122,207)
---------- --------- --------- ----------
NET INCREASE (DECREASE)
BEFORE INTERFUND TRANSFERS 267,594 16,046 (1,822) 705,065
NET INTERFUND TRANSFERS (50,908) 4,871 20,563 -
---------- --------- --------- ----------
NET INCREASE 216,686 20,917 18,741 705,065
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 273,082 13,692 - 486,732
---------- --------- --------- ----------
End of year $ 489,768 $ 34,609 $ 18,741 $1,191,797
========== ========= ========= ==========
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
8
<PAGE>
THE SHARPER IMAGE
401k SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1996 AND 1995
- --------------------------------------------------------------------------------
1. DESCRIPTION OF THE PLAN
The following description of The Sharper Image (the "Company") 401k Savings
Plan (the "Plan") provides only general information. Participants should
refer to the Plan agreement for a more complete description of the Plan's
provisions.
General- The Plan was established on April 1, 1994. The Plan is a defined
contribution plan covering all employees who have completed one year of
service with at least 1,000 hours and are age twenty-one or older. The Plan
is intended to qualify under Sections 401(a) and 401(k) of the Internal
Revenue Code ("IRC"). The purpose of the Plan is to provide retirement and
other benefits for employees of the Company. It is subject to the
provisions of the Employee Retirement Income Security Act of 1974
("ERISA").
Contributions- Participants may contribute 1% to 10% of their annual
compensation, plus up to 100% of any employer paid cash bonus, not to
exceed the maximum deductible amount of $9,500 for the year ended December
31, 1996 and $9,240 for the year ended December 31, 1995. Participants may
also effect rollover distributions to the Plan from other qualified defined
benefit or contribution plans. For the year ended December 31, 1996 and
1995 the Company made employer matching contributions equal to 100% of the
participants contribution up to a maximum of $250 per participant.
Participant Accounts- Each participant's account is credited with the
participant's contributions, the Company's matching contribution, and
allocations of Plan earnings. Forfeited balances of terminated
participants' nonvested accounts remain in the Plan and will be applied
first to the payment of administrative expenses and then to reduce future
Company contributions.
Vesting- Participants are immediately vested in the contributions they make
to the Plan, plus actual earnings thereon. Vesting in the Company's
matching contributions, made on their behalf, plus earnings thereon is
based on years of service. A participant is 100% vested after five years of
credited service.
Investment Options- Upon enrollment in the Plan, a participant can direct
his or her contributions to any of the six investment options:
Compass Capital Balanced Fund- Funds are invested in equity and
fixed-income senior securities with at least 25% of the
portfolios's total assets invested in fixed-income senior
securities.
9
<PAGE>
Compass Capital Growth Equity Fund- Funds are primarily invested in
common stock in the middle and higher capitalization ranges (over
$1 billion market capitalization at the time of purchase) and
growth prospects exceeding that of the general economy. In
January 1997, the name of this fund was changed to Compass
Capital Large Cap Growth Equity Fund.
Compass Capital Index Equity Fund- Funds are substantially invested in
common stock in the Standard & Poor's 500 Index in approximately
the same proportion as they are represented in such Index.
Compass Capital Intermediate Government Bond Fund- Funds are primarily
invested in obligations issued or guaranteed by the United States
government, its agencies or instrumentalities and repurchase
agreements and collaterized mortgage obligations relating to such
obligations.
Compass Capital Money Market Fund- Funds are invested in short-term,
high quality United States dollar denominated instruments.
Sharper Image Corporation Common Stock Fund- Funds are invested in
common stock of the Company.
Distribution of Benefits - Upon termination of service for any reason,
including death, disability or retirement, a participant may receive the
value of the participant's vested interest in his or her account as a
lump-sum distribution.
Participant Loans - Participant loans are available to active employees.
The loan amount available is 50% of a participant's vested account balance,
with a minimum loan of $1,000 and a maximum loan of $50,000. As of December
31, 1996, there were 29 loans outstanding, with interest rates ranging from
9.2% to 10%, and as of December 31, 1995, there were 13 loans outstanding
with interest rates ranging from 9.5% to 10%.
Plan Termination- Although the Company has not expressed any intent to
terminate the Plan agreement, it may do so at any time. The Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan under the provisions of ERISA.
Tax Status - The Plan is a standardized prototype cash or deferred profit
sharing plan sponsored by PNC Bank, National Association. A favorable
determination letter for this standardized prototype was issued by the
Internal Revenue Service ("IRS") on April 10, 1990 and a favorable
determination letter for the amendment to the standardized prototype was
issued by the IRS on February 8, 1993. The Plan Administrator believes that
the Plan is currently designed and is being operated in compliance with the
applicable requirements of the IRC. Therefore, no provision for income
taxes has been included in the Plan's financial statements.
Administrative Expenses - Plan administrative expenses are primarily paid
through forfeited balances of terminated participants' non-vested portion
of the Company's matching contributions.
Forfeiture Accounts - At December 31, 1996, forfeited non-vested account
balances totaled $5,027. These accounts will be used to offset future
expenses of the Plan. In addition, during 1996, Plan administrative
expenses totaling $18,896 were deducted from these account balances.
10
<PAGE>
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting - The financial statements of the Plan are prepared
under the accrual method of accounting.
Investment Valuation and Income Recognition - The Plan's investments are
stated at fair value. Shares of registered investment companies are valued
at quoted market prices which represent the net asset value of shares held
by the Plan at year-end. The Company stock is valued at its quoted market
price. Participant loans are carried at the unpaid principal balance, which
approximates fair value.
Purchases and sales of securities are recorded on a trade-date basis.
Interest income is recorded on an accrual basis. Dividends are recorded on
the ex-dividend date.
Payment of Benefits - Benefits are recorded when paid.
Accounting Estimates - The preparation of financial statements in
comformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
3. INVESTMENTS
Investments that represent 5% or more of the Plan's net assets at December
31, 1996 and 1995 are separately identified in the following table:
December 31, 1996 December 31, 1995
----------------- -----------------
Number of Number of
Shares or Fair Shares or Fair
Par Value Value Par Value Value
--------- ----- --------- -----
Compass Capital
---------------
Balanced Fund 23,797 $ 368,136 14,046 $ 200,439
Growth Equity Fund 33,075 488,517 21,064 272,785
Index Equity Fund 17,837 255,603 7,363 92,189
Money Market Fund 493,585 569,953 408,014 446,943
11
<PAGE>
4. DUE TO PARTICIPANTS WHO HAVE WITHDRAWN
As of December 31, 1996, net assets available for benefits included $7,900,
due to participants who have withdrawn from participation in the Plan. No
such amount were outstanding as of December 31, 1995.
12
<PAGE>
THE SHARPER IMAGE
401k SAVINGS PLAN
<TABLE>
Item 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1996
<CAPTION>
Number of
Shares or Fair
Description of Investment Par Value Cost Value
------------------------- --------- ---- -----
<S> <C> <C> <C>
FIXED INCOME SECURITIES
Compass Capital Balanced Equity Fund 23,797 $ 328,972 $ 368,136
EQUITY SECURITIES
Compass Capital Growth Equity Fund 33,075 421,160 488,517
Compass Capital Index Equity Fund 17,837 233,247 255,603
GOVERNMENT SECURITIES
Compass Capital Intermediate Government Bond Fund 4,518 45,005 45,267
MONEY MARKET FUND
Compass Capital Money Market Fund 493,585 530,535 569,953
COMMON STOCK
Sharper Image Corporation Common Stock Fund 6,516 53,772 42,558
PARTICIPANT LOAN
Twenty nine loans outstanding with interest rates
ranging from 9.2% to 10% 59,845 59,845 59,845
---------- ----------
Total Investments $1,672,536 $1,829,879
========== ==========
</TABLE>
13
<PAGE>
THE SHARPER IMAGE
401k SAVINGS PLAN
<TABLE>
Item 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1996
<CAPTION>
Identity of Purchases Sales
Party Involved Transactions Price Transactions Price Gain/(Loss)
- -------------- ------------ -------- ------------ -------- ----------
<S> <C> <C> <C> <C> <C>
Compass Capital Balanced Fund 55 $196,579 42 $ 52,123 $ 5,327
Compass Capital Growth Equity Fund 54 256,722 47 87,366 14,050
Compass Capital Index Equity Fund 55 165,730 35 25,490 1,399
Compass Capital Intermediate Government Bond Fund 41 29,380 31 15,122 94
Compass Capital Money Market Fund 69 262,409 75 167,135 9,101
Sharper Image Corporation Common Stock Fund 33 32,218 30 9,087 (2,607)
</TABLE>
14
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this annual report to be signed on its behalf by the undersigned hereunto
duly authorized.
THE SHARPER IMAGE 401k SAVINGS PLAN
BY SHARPER IMAGE CORPORATION
PLAN ADMINISTRATOR
Date: June 26, 1997 by: /s/ Craig P. Womack
---------------------- ------------------------------
Craig P. Womack
President, Chief Administrative Officer and
Plan Administrator
15
<PAGE>
Exhibit 23.1
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement No.
33-12755 and Registration Statement No. 33-80504 of Sharper Image Corporation on
Forms S-8 of our report dated June 12, 1997, appearing in this Annual Report on
Form 11-K of The Sharper Image 401k Savings Plan for the year ended December 31,
1996.
June 25, 1997
16
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this annual report to be signed on its behalf by the undersigned hereunto
duly authorized.
THE SHARPER IMAGE 401k SAVINGS PLAN
BY SHARPER IMAGE CORPORATION
PLAN ADMINISTRATOR
By____________________________________________
President, Chief Administrative Officer and
Plan Administrator
