Dim Prospects for Sharper Image

Despite poor quarterly numbers, the gadget retailer dismisses bankruptcy chatter, but it desperately needs a healthy holiday season
A Sharper Image retail store in the Lenox Square Mall in Atlanta. Erik S. Lesser/Bloomberg News
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The outlook for Sharper Image (SHRP) is getting fuzzy.

The high-profile retailer known for cutting-edge gadgets has seen its stock hammered in recent days, dropping more than 50% over five trading days from $3.75 to $1.87 on Oct. 17. Prompting the swoon was the refusal by a federal court judge to approve the proposed settlement in a class action over Sharper Image's air purifiers.