PEMBROKE PINES, Fla., April 6 /PRNewswire-FirstCall/ -- Claire's
Stores, Inc. (NYSE: CLE) today reported that for the five weeks ended April
1, 2006 comparable store sales decreased three percent, in contrast to the
five-week period ended April 2, 2005 when comparable store sales rose ten
percent. The primary reason for the decline is the shift in Easter, which
falls in April this year in contrast to last year, when Easter was in
March. Total sales during the five-week period ended April 1, 2006
decreased three percent to $116,666,000 compared with $119,692,000 for the
comparable five-week period last year.
Comparable store sales results for March 2006 compared to March 2005
were as follows:
* Claire's North America: negative low single digits
* Claire's International: negative mid single digits
* Icing by Claire's: flat
Please note that our comparable store sales numbers are calculated in
local currencies. Total sales numbers give effect to the impact of foreign
exchange, with March 2006 revenues reflecting the strengthening of the U.S.
dollar compared to March 2005.
Bonnie Schaefer, Co-Chairman and Co-CEO stated that, "March comparable
store sales comparisons were somewhat difficult in our International
division as we were not only dealing with the Easter shift but the absence
of Comic Relief Red Nose Day, a countrywide charity event in the UK that
occurs every other year. Last year, we realized approximately $1.5 million
in incremental sales due to this event. We are pleased however, that our
inventory levels remain on plan and we believe that the merchandise
currently in our European stores constitutes an improved offering over this
time last year. We are looking forward to a stronger International business
in April, as our customers prepare for Easter and accessorize their spring
looks. We are also pleased to announce that in March, we opened our first
store in Portugal, moving ahead with our plan to further expand our
business in Europe."
Marla Schaefer, Co-Chairman and Co-CEO of Claire's Stores noted that,
"Our consolidated March results seem to be a mirror of last April, when we
reported negative comparable store sales as a result of the Easter shift.
Our expectation is that our April comparable stores sales will return to
positive territory, and we continue to repeat the advice we have been
giving since March: specifically, that March and April should be judged as
a unit for the purposes of measuring the performance of our business."
CLAIRE'S STORES, INC.
(Monthly Sales in 000's)
TOTAL COMP. STORE
REPORTING PERIOD FY 2007 FY 2006 CHANGE CHANGE
February $ 90,939 $ 88,139 3% 4%
March $116,666 $119,692 -3% -3%
Year-to-Date $207,605 $207,831 0% 0%
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 April 1, 2006, Claire's Stores,
Inc. operated approximately 2,900 stores in the United States, Canada,
Puerto Rico, the Virgin Islands, the United Kingdom, Ireland, France,
Switzerland, Austria, Germany, Spain, Portugal, Holland and Belgium.
Claire's Stores, Inc. operates through its subsidiary, Claire's Nippon,
Co., Ltd., 175 stores in Japan as a 50:50 joint venture with AEON, Co.,
Ltd. (fka JUSCO, Co. Ltd.), a $40 billion specialty retailer headquartered
in Japan. The Company also licenses 88 stores in the Middle East and Turkey
under a licensing and merchandising agreement with Al Shaya Co., Ltd. and
eight 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. Statements that are not historical are considered forward-looking
statements. 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 conditions
such as inflation and increased energy costs; general and political social
conditions such as war, political unrest and terrorism; natural disasters
or severe weather events; currency fluctuations and exchange rate
adjustments; changes in laws; uncertainties generally associated with the
specialty retailing business; disruptions in our supply of inventory;
inability to increase comparable store sales at recent historical rates;
inability to design and implement new information systems; delays in
anticipated store openings or renovations; 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 29, 2005. 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
http://www.prnewswire.com/comp/174913.html/
CONTACT:
Marisa F. Jacobs, Esq., Vice President of
Corporate Communications and Investor Relations of Claire's
Stores, Inc., +1-212-594-3127, Fax: +1-212-244-4237,
marisa.jacobs@claires.com
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