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, 1997 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
<PAGE>
THE SHARPER IMAGE
401k SAVINGS PLAN
Financial Statements as of and for the years
ended December 31, 1997 and 1996,
Supplemental Schedules as of and for the
year ended December 31, 1997 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, 1997 and 1996 5-6
Statements of Changes in Net Assets Available for Benefits,
With Fund Information for the years ended December 31, 1997 and
1996 7-8
Notes to Financial Statements 9-11
SUPPLEMENTAL SCHEDULES:
Item 27a - Supplemental Schedule of Assets Held
for Investment Purposes as of December 31, 1997 12
Item 27d - Supplemental Schedule of Reportable
Transactions for year ended December 31, 1997 13
OTHER INFORMATION:
Exhibit 23.1 - Independent Auditors' Consent 15
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, 1997 and
1996, 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 statements 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,
1997 and 1996, 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 supplemental 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 fund. These supplemental schedules and fund information have been
subjected to the auditing procedures applied in our audit of the basic 1997
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.
/s/ Deloitte & Touche LLP
- -----------------------------
May 29, 1998
4
<PAGE>
<TABLE>
THE SHARPER IMAGE
401k SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Compass
Capital Compass Compass Compass
Compass Large Cap Capital Capital Capital Sharper Image
Capital Growth Index Inter. Money Corporation
Balanced Equity Equity Govt.Bond Market Common Stock
Fund Fund Fund(1) Fund Fund Fund
----------- ---------- ------------ ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Investments at Fair Value:
Fixed-Income Securities $ 534,055
Equity Securities $ 731,342 $ 486,739
Government Securities $ 64,600
Money Market Fund $ 638,030
Common Stock $ 90,421
Participant Loans
----------- ---------- ------------ ---------- ---------- ------------
Total Investments at Fair Value 534,055 731,342 486,739 64,600 638,030 90,421
----------- ---------- ------------ ---------- ---------- ------------
Receivables:
Employee Contributions 3,783 5,402 4,183 705 3,837 963
Employer Contribution 14,165 19,034 13,849 2,985 21,297 5,287
----------- ---------- ------------ ---------- ---------- ------------
17,948 24,436 18,032 3,690 25,134 6,250
----------- ---------- ------------ ---------- ---------- ------------
Liabilities-Excess Contributions (1,984) (3,265) (6,708) (1,029) (1,186)
----------- ---------- ------------ ---------- ---------- ------------
Net Assets Available for Benefits $ 550,019 $ 752,513 $ 498,063 $ 68,290 $ 662,135 $ 95,485
============ ========== ============ ========== ========== ============
Participant
Loans Total
--------- -----------
Investments at Fair Value:
Fixed-Income Securities $ 534,055
Equity Securities 1,218,081
Government Securities 64,600
Money Market Fund 638,030
Common Stock 90,421
Participant Loans $ 97,448 97,448
--------- -----------
Total Investments at Fair Value 97,448 2,642,635
--------- -----------
Receivables:
Employee Contributions 18,873
Employer Contribution 76,617
--------- -----------
95,490
--------- -----------
Liabilities-Excess Contributions (14,172)
--------- -----------
Net Assets Available for Benefits $ 97,448 $ 2,723,953
========= ===========
<FN>
(1)Formerly Compass Capital Growth Equity Fund.
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, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Compass Compass Compass Compass
Compass Capital Capital Capital Capital Sharper Image
Capital Growth Index Inter. Money Corporation
Balanced Equity Equity Govt. Bond Market Common Stock
Fund Fund Fund Fund Fund Fund
------------ ---------- ----------- ---------- ---------- ------------
<S> <C> <C> <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 $ 569,953
Common Stock $ 42,558
Participant Loans
------------ ---------- ----------- ---------- ---------- ------------
Total Investments at Fair Value 368,136 488,517 255,603 45,267 569,953 42,558
------------ ---------- ----------- ---------- ---------- ------------
Receivables:
Employee Contributions 7,744 11,408 7,737 1,211 10,808 1,744
Employer Contribution 15,041 20,239 12,459 3,162 26,356 4,070
------------ ---------- ----------- ---------- ---------- ------------
22,785 31,647 20,196 4,373 37,164 5,814
------------ ---------- ----------- ---------- ---------- ------------
Liabilities-Excess Contributions (2,765) (8,116) (5,310) (272) (1,211) (451)
------------ ---------- ----------- ---------- ---------- ------------
Net Assets Available for Benefits $ 388,156 $ 512,048 $ 270,489 $ 49,368 $ 605,906 $ 47,921
============ ========== =========== ========== ========== ============
Participant
Loans Total
------------ ----------
Investments at Fair Value:
Fixed-Income Securities $ 368,136
Equity Securities 744,120
Government Securities 45,267
Money Market Fund 569,953
Common Stock 42,558
Participant Loans $ 59,845 59,845
------------ ----------
Total Investments at Fair Value 59,845 1,829,879
------------ ----------
Receivables:
Employee Contributions 40,652
Employer Contribution 81,327
------------ ----------
121,979
------------ ----------
Liabilities-Excess Contributions (18,125)
------------ ----------
Net Assets Available for Benefits $ 59,845 $1,933,733
============ ==========
<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, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Compass
Capital Compass Compass Compass
Compass Large Cap Capital Capital Capital Sharper Image
Capital Growth Index Inter. Money Corporation
Balanced Equity Equity Govt. Bond Market Common Stock
Fund Fund1 Fund Fund Fund Fund
----------- ---------- ---------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment income:
Net appreciation
in fair value of investments $ 50,563 $ 52,254 $ 101,936 $ 968 $ 10,508
Interest and dividend income 48,130 99,758 7,986 3,171 $ 35,194 33
----------- ---------- ---------- ---------- --------- ---------
Total investment income 98,693 152,012 109,922 4,139 35,194 10,541
Employer contributions 14,165 19,034 13,849 2,985 21,297 5,287
Employee contributions 138,602 205,972 156,459 25,303 166,392 33,804
----------- ---------- ---------- ---------- --------- ---------
Total additions 251,460 377,018 280,230 32,427 222,883 49,632
----------- ---------- ---------- ---------- --------- ---------
DEDUCTIONS FROM NET ASSETS:
Benefits paid to terminated participants (80,041) (119,074) (91,658) (11,021) (83,180) (5,221)
Administrative expenses (Note 1) (11,827)
----------- ---------- ---------- ---------- --------- ---------
Total deductions (80,041) (119,074) (91,658) (11,021) (95,007) (5,221)
----------- ---------- ---------- ---------- --------- ---------
NET INCREASE (DECREASE)
BEFORE INTERFUND TRANSFERS 171,419 257,944 188,572 21,406 127,876 44,411
NET INTERFUND TRANSFERS (9,556) (17,479) 39,002 (2,484) (71,647) 3,153
----------- ---------- ---------- ---------- --------- ---------
NET INCREASE 161,863 240,465 227,574 18,922 56,229 47,564
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 388,156 512,048 270,489 49,368 605,906 47,921
----------- ---------- ---------- ---------- --------- ---------
End of year $ 550,019 $ 752,513 $ 498,063 $ 68,290 $ 662,135 $ 95,485
=========== ========== ========== ========== ========= =========
Participant
Loans Total
---------- -----------
ADDITIONS TO NET ASSETS:
Investment income:
Net appreciation
in fair value of investments $ 216,229
Interest and dividend income 194,272
---------- -----------
Total investment income 410,501
Employer contributions 76,617
Employee contributions 726,532
---------- -----------
Total additions 1,213,650
---------- -----------
DEDUCTIONS FROM NET ASSETS:
Benefits paid to terminated participants $ (21,408) (411,603)
Administrative expenses (Note 1) (11,827)
---------- -----------
Total deductions (21,408) (423,430)
---------- -----------
NET INCREASE (DECREASE)
BEFORE INTERFUND TRANSFERS (21,408) 790,220
NET INTERFUND TRANSFERS 59,011
---------- -----------
NET INCREASE 37,603 790,220
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 59,845 1,933,733
---------- -----------
End of year $ 97,448 $ 2,723,953
========== ===========
<FN>
(1)Formerly Compass Capital Growth Equity Fund.
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, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Compass Compass Compass Compass
Compass Capital Capital Capital Capital Sharper Image
Capital Growth Index Inter. Money Corporation
Balanced Equity Equity Govt. Bond Market Common Stock
Fund Fund Fund Fund Fund Fund
---------- ---------- ---------- --------- ---------- ---------
<S> <C> <C> <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) $ (11,067)
Interest and dividend income 21,012 24,504 14,108 2,131 $ 28,648 31
---------- ---------- ---------- --------- ---------- ---------
Total investment income (loss) 44,252 70,880 37,282 1,656 28,648 (11,036)
Employer contributions 15,041 20,239 12,459 3,162 26,356 4,070
Employee contributions 134,112 183,088 105,169 23,331 205,682 25,582
---------- ---------- ---------- --------- ---------- ---------
Total additions 193,405 274,207 154,910 28,149 260,686 18,616
---------- ---------- ---------- --------- ---------- ---------
DEDUCTIONS FROM NET ASSETS:
Benefits paid to terminated participants (27,834) (47,387) (16,941) (8,278) (64,156) (2,601)
Administrative expenses (Note 1) (18,896)
---------- ---------- ---------- --------- ---------- ---------
Total deductions (27,834) (47,387) (16,941) (8,278) (83,052) (2,601)
---------- ---------- ---------- --------- ---------- ---------
NET INCREASE (DECREASE)
BEFORE INTERFUND TRANSFERS 165,571 226,820 137,969 19,871 177,634 16,015
NET INTERFUND TRANSFERS 5,259 (9,537) 31,697 (6,268) (61,496) (2,703)
---------- ---------- ---------- --------- ---------- ---------
NET INCREASE 170,830 217,283 169,666 13,603 116,138 13,312
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 217,326 294,765 100,823 35,765 489,768 34,609
---------- ---------- ---------- --------- ---------- ---------
End of year $ 388,156 $ 512,048 $ 270,489 $ 49,368 $ 605,906 $ 47,921
========== ========== ========== ========= ========== =========
Participant
Loans Total
--------- ----------
ADDITIONS TO NET ASSETS:
Investment income (loss):
Net appreciation (depreciation)
in fair value of investments $ 81,248
Interest and dividend income 90,434
--------- ----------
Total investment income (loss) 171,682
Employer contributions 81,327
Employee contributions 676,964
--------- ----------
Total additions 929,973
--------- ----------
DEDUCTIONS FROM NET ASSETS:
Benefits paid to terminated participants $ (1,944) (169,141)
Administrative expenses (Note 1) (18,896)
--------- ----------
Total deductions (1,944) (188,037)
--------- ----------
NET INCREASE (DECREASE)
BEFORE INTERFUND TRANSFERS (1,944) 741,936
NET INTERFUND TRANSFERS 43,048
--------- ----------
NET INCREASE 41,104 741,936
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 18,741 1,191,797
--------- ----------
End of year $ 59,845 $1,933,733
========= ==========
<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, 1997 AND 1996
- --------------------------------------------------------------------------------
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 years ended December 31, 1997
and 1996. Participants may also effect rollover distributions to the Plan from
other qualified defined benefit or contribution plans. For the years ended
December 31, 1997 and 1996 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- Participants can direct their contributions to any of the
six investment options:
Compass Capital Balanced Fund- The prospectus indicates that the 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>
1. DESCRIPTION OF THE PLAN (continued)
Compass Capital Large Cap Growth Equity Fund- The prospectus indicates
that the 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. Prior to January 1997 the fund was called the Compass
Capital Growth Equity Fund.
Compass Capital Index Equity Fund- The prospectus indicates that the
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- The prospectus
indicates that the 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- The prospectus indicates that the
funds are invested in short-term, high quality United States dollar
denominated instruments.
Sharper Image Corporation Common Stock Fund- The prospectus indicates
that the funds are invested in common stock of the Company.
Effective January 31, 1998, Compass Capital Funds changed its name to
BlackRock Funds
Distribution of Benefits - Upon termination of service for any reason,
including death, disability or retirement, a participant may receive the value
of their vested interest 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, 1997,
there were 59 loans outstanding, with interest rates ranging from 9.25% to
9.75%, and as of December 31, 1996, there were 29 loans outstanding with
interest rates ranging from 9.2% 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.
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.
Forfeiture Accounts - At December 31, 1997 and 1996, forfeited non-vested
account balances totaled $15,228 and $5,027, respectively. These accounts will
be used to offset future expenses of the Plan. In addition, during 1997 and
1996, Plan administrative expenses totaling $11,827 and $18,896, respectively,
were deducted from these account balances.
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.
Administrative Expenses - Plan administrative expenses are primarily paid
through forfeited balances of terminated participants' non-vested portion of
the Company's matching contributions.
<TABLE>
3. INVESTMENTS
Investments that represent 5% or more of the Plan's net assets at December 31,
1997 and 1996 are separately identified in the following table:
<CAPTION>
December 31, 1997 December 31, 1996
----------------- -----------------
Number of Number of
Shares or Fair Shares or Fair
Par Value Value Par Value Value
--------- ----- --------- -----
<S> <C> <C> <C> <C>
Compass Capital:
Balanced Fund 30,817 $ 534,055 23,797 $ 368,136
Large Cap Growth
Equity Fund 45,061 731,342 33,075 488,517
Index Equity Fund 26,029 486,739 17,837 255,603
Money Market Fund 523,827 638,030 493,585 569,953
---------- ----------
$2,390,166 $1,682,209
========== ==========
</TABLE>
4. DUE TO PARTICIPANTS WHO HAVE WITHDRAWN
As of December 31, 1997 and 1996, net assets available for benefits included
$1,300 and $7,900, respectively, due to participants who had withdrawn from
participation in the Plan.
11
<PAGE>
THE SHARPER IMAGE
401k SAVINGS PLAN
<TABLE>
Item 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1997
<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 30,817 $ 463,787 $ 534,055
EQUITY SECURITIES
Compass Capital Large Cap Growth Equity Fund 45,061 647,124 731,342
Compass Capital Index Equity Fund 26,029 386,880 486,739
GOVERNMENT SECURITIES
Compass Capital Intermediate Government Bond Fund 6,346 63,436 64,600
MONEY MARKET FUND
Compass Capital Money Market Fund 523,827 580,569 638,030
COMMON STOCK
Sharper Image Corporation Common Stock Fund 12,680 89,261 90,421
PARTICIPANT LOANS
Fifty-nine loans outstanding with interest rates
ranging from 9.25% to 9.75% 97,448 97,448 97,448
---------- ----------
Total Investments $2,328,505 $2,642,635
========== ==========
</TABLE>
12
<PAGE>
THE SHARPER IMAGE
401k SAVINGS PLAN
<TABLE>
Item 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
<CAPTION>
Identity of Purchases Sales
Party Involved Transactions Price Transactions Price Gain/(Loss)
- -------------- ------------ ----- ------------ ----- -----------
<S> <C> <C> <C> <C> <C>
Compass Capital:
Balanced Fund 51 $230,085 55 $114,729 $ 19,459
Large Cap Growth Equity Fund 53 362,361 65 171,803 35,405
Index Equity Fund 57 252,096 51 122,897 24,434
Intermediate Government
Bond Fund 45 33,649 37 15,283 66
Money Market Fund 81 238,478 75 203,762 15,252
Sharper Image Corporation
Common Stock Fund 39 44,269 35 6,923 (1,857)
</TABLE>
13
<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, 1998 by:/s/ Tracy Y. Wan
---------------------- ---------------------------
Tracy Y. Wan
Senior Vice President,
Chief Financial Officer and
Plan Administrator
14
EXHIBIT 23.1
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement Nos.
33-12755, 33-80504, and 33-3327 of Sharper Image Corporation, all on Forms S-8
of our report dated May 29, 1998, appearing in this Annual Report on Form 11-K
of The Sharper Image 401k Savings Plan for the year ended December 31, 1997.
/s/ Deloitte & Touche LLP
- ----------------------------
June 26, 1998
