PEMBROKE PINES, Fla., Jan. 6 /PRNewswire-FirstCall/ -- Claire's Stores,
Inc. (NYSE: CLE) today reported its comparable store sales results for the
month of December and also updated its guidance with respect to the fourth
quarter of Fiscal 2005.
Comparable Store Sales: For the five weeks ended January 1, 2005
comparable store sales increased five percent after increasing six percent
during the corresponding five-week period last year. Total sales during the
five-week period ended January 1, 2005 increased nine percent to $224,024,000
compared with $205,635,000 for the comparable five-week period last year.
Comparable store sales results for December 2004 compared to December 2003
were as follows:
-- Claire's North America: positive low single digits
-- Claire's International: positive high single digits
-- Icing by Claire's: positive high single digits
For the first 11 months of Fiscal 2005, sales have increased 13 percent to
$1,204,915,000 compared to sales of $1,065,865,000 for the comparable period
last year. Comparable store sales increased eight percent for the first 11
months of this fiscal year compared to an increase of seven percent during the
first 11 months of Fiscal 2004.
Marla Schaefer, Co-Chairman and Co-CEO of Claire's Stores noted that,
"Based on prior trends, we had anticipated a late start to the holiday selling
season. At the same time, we expected traffic to spike in the two weeks
preceding Christmas, especially on account of the two extra selling days
between Thanksgiving and Christmas versus last year. However, traffic did not
reach anticipated levels, causing our results to come in below plan. Post-
Christmas sales have been robust and a large increase in gift card sales over
last year is providing potential upside for January. Nevertheless, we are
revising our fourth quarter guidance to reflect our recently updated internal
plans."
Marla Schaefer added that, "We do not believe our December performance is
attributable to a major 'miss' in either our accessory or jewelry selections,
and in fact, sell throughs on our holiday related and gift items were very
high. On a consolidated basis in North America, our average unit retail price
and our unit per transaction numbers this December exceeded last December,
leading as well to a higher average dollar sale. Business did not, however,
reach anticipated levels, as transactions were essentially flat. Our revised
projections take into account more modest expectations for January. We are
also evaluating inventory levels now, so that we begin Fiscal 2006 in a clean
position. I want to conclude by noting that initial sales of spring and
seasonal Valentine's Day merchandise are encouraging, although we remain
cautious based on our limited experience to date with this new inventory."
Bonnie Schaefer, Co-Chairman and Co-CEO stated that, "Our efforts to
strengthen our international operation continue and the results can clearly be
seen in terms of improved comparable store sales. The introduction of North
American best practices is continuing and measurable progress can be seen in
the stores. Inventory selection and levels have been refined, our stores are
more visually appealing than they were earlier this year, promotional items
are being positioned more successfully and customer service has been enhanced.
While we are pleased with this progress, our efforts in this area are far from
complete and we expect further improvements to be forthcoming."
Bonnie Schaefer also noted that, "We view Fiscal 2006 as the kick off
point for our efforts to aggressively build Claire's brand internationally.
Beyond expanding where we currently own stores, we will be opening company
owned stores in at least two new countries in the latter half of Fiscal 2006.
We see significant opportunities in these markets and are already working to
secure locations meeting our criteria. In addition, Claire's stores operated
by our licensing partners in the Middle East and South Africa have been
performing particularly well. As a result, new store openings in their
respective territories will be accelerated in Fiscal 2006."
CLAIRE'S STORES, INC.
(Monthly Sales in 000's)
TOTAL COMP. STORE
REPORTING PERIOD FY 2005 FY 2004 CHANGE CHANGE
February $ 82,229 $ 66,858 23% 15%
March $ 105,782 $ 90,806 16% 10%
April $ 93,952 $ 82,092 14% 9%
May $ 89,239 $ 78,258 14% 10%
June $ 116,757 $ 101,072 16% 11%
July $ 98,824 $ 85,619 15% 9%
August $ 98,990 $ 87,620 13% 7%
September $ 105,884 $ 93,911 13% 10%
October $ 91,909 $ 82,615 11% 9%
November $ 97,325 $ 91,379 7% 3%
December $ 224,024 $ 205,635 9% 5%
Year-to-Date $1,204,915 $1,065,865 13% 8%
Fourth Quarter Guidance:
Fourth quarter revenues, previously estimated at $396 to $405 million, are
now projected to range between $390 to $396 million. These new estimates
represent an increase of seven to nine percent over last year's revenue number
of $364 million.
Comparable store sales for the quarter are now projected to rise by four
to six percent. The prior estimate called for fiscal fourth quarter
comparable store sales to increase by six to eight percent. During the fourth
quarter of Fiscal 2004, comparable store sales rose by seven percent.
Net income projections for the fourth quarter of Fiscal 2005 have been
reduced to $57 million to $61 million, or $0.57 to $0.61 per diluted share,
from the earlier estimate of $61 to $66 million, or $0.61 to $0.66 per diluted
share. In Fiscal 2004, fourth quarter net income reached $0.53 per diluted
share. The $0.53 amount includes a $0.06 per diluted share charge
attributable to the retirement package granted to the Company's founder and
former Chairman of the Board.
Fiscal 2005 results will be announced on March 10, 2005 along with more
detailed information regarding management's plans and projections for Fiscal
2006.
Company Overview
Claire's Stores, Inc., is a leading international specialty retailer
offering value-priced costume jewelry and accessories to fashion-aware tweens,
teens and young adults through its two store concepts: Claire's and Icing by
Claire's. While the latter operates only in North America, Claire's operates
internationally. As of January 1, 2005, Claire's Stores, Inc. operated
approximately 2,855 stores in the United States, Canada, Puerto Rico, the
Virgin Islands, the United Kingdom, Ireland, France, Switzerland, Austria and
Germany. Claire's Stores, Inc. operates through its subsidiary, Claire's
Nippon, Co., Ltd., 149 stores in Japan as a 50:50 joint venture with AEON,
Co., Ltd. (fka JUSCO, Co. Ltd.), a $25 billion specialty retailer
headquartered in Japan. The Company also licenses 57 stores in the Middle
East and Turkey under a licensing and merchandising agreement with Al Shaya
Co., Ltd. and four stores in South Africa under similar agreements with The
House of Busby Limited.
Forward-looking Statements
This press release contains "forward-looking statements" which represent
the Company's expectations or beliefs with respect to future events. These
forward-looking statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those anticipated. Those
factors include, without limitation: changes in consumer preferences and
consumer spending for pre-teen, teen and young adult apparel and accessories;
competition; general economic, political and social conditions such as war,
political unrest and terrorism; natural disasters; currency fluctuations and
exchange rate adjustments; changes in laws; uncertainties generally associated
with the specialty retailing business; disruptions in our supply of inventory;
and uncertainty that definitive financial results may differ from preliminary
financial results due to, among other things, final GAAP adjustments. These
and other applicable risks, cautionary statements and factors that could cause
actual results to differ from the Company's forward-looking statements are
included in the Company's filings with the SEC, specifically as described in
the Company's annual report on Form 10-K for the Fiscal year ended January 31,
2004. The Company undertakes no obligation to update or revise any forward-
looking statements to reflect subsequent events or circumstances. The
historical results contained in this press release are not necessarily
indicative of the future performance of the Company.
Additional Information:
Note: Other Claire's Stores, Inc. press releases, a corporate profile and
most recent 10-K and 10-Q reports are available via Claire's corporate
website: http://www.clairestores.com. For information about our products and
stores, please go to http://www.claires.com .
SOURCE Claire's Stores, Inc.
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Related links:
http://www.clairestores.com
http://www.claires.com
Company News On-Call:
http://www.prnewswire.com/comp/174913.html
CONTACT:
Marisa F. Jacobs, Esq., Vice President of
Corporate Communications and Investor Relations, +1-212-594-3127,
Fax: +1-212-244-4237, marisa.jacobs@claires.com
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