(Adds details, share movement)
Jan 10 (Reuters) - Eddie Bauer Holdings Inc's EBHI.O fourth-quarter sales at stores open at least a year rose 4.8 percent, as the casual and outdoor clothing retailer continued its turnaround, and its shares rose more than 35 percent.
However, Chief Executive Neil Fiske said overall results were hurt by continued weakness in the outlet division.
Shares of the company were trading at $6.18 in morning trade, making it the highest percentage gainer on the Nasdaq.
Eddie Bauer's Fiske reiterated the company's target to cut $25 million to $30 million of operating cost in 2008.
"We recognize that the current cost structure is too high," Fiske said in a statement.
Fiske joined the company in July last year after serving as CEO of Bath and Body Works, a division of Limited Brands Inc. LTD.N, which also operates the lingerie store, Victoria's Secret.
Fiske's appointment followed the resignation of Eddie Bauer's then CEO, Fabian Mansson, who left after shareholders rejected a proposed takeover by two private equity firms.
Eddie Bauer also named a new chief financial officer in November last year. (Reporting by Varsha Tickoo in Bangalore; editing by Anil D'Silva)