PEMBROKE PINES, Fla., April 7 /PRNewswire-FirstCall/ -- Claire's Stores,
Inc. (NYSE: CLE) today reported that for the five weeks ended April 2, 2005
comparable store sales increased ten percent. This increase is on top of a 10
percent increase during the corresponding five-week period last year. Total
sales during this period increased 13 percent to $119,692,000 compared with
$105,782,000 for the comparable five-week period last year.
Comparable store sales results for March 2005 compared to March 2004 were
as follows:
* Claire's North America: positive high single digits
* Claire's International: positive mid teens
* Icing by Claire's: positive high single digits
Bonnie Schaefer, Co-Chairman and Co-CEO stated that, "We are pleased to
report on the continuing progress being made in our international division.
Variations among the different countries are still occurring, however, with
performance in France lagging behind that of the other regions. Overall, the
most significant impact on the month was the timing of Easter, shifting into
March this year from April last year. This undoubtedly accounted for a
significant portion of the increase in comparable store sales. A second
event, relevant only to the United Kingdom, also contributed to the
significant international comparable store sales growth. Comic Relief Red
Nose Day, which occurs every other year, is a charity designed to raise money
for various causes in both the U.K. and third world nations. Numerous parties
were held in connection with Red Nose Day, and we have estimated that
approximately $1.5 million in incremental sales were realized in the United
Kingdom in connection with this event."
Marla Schaefer, Co-Chairman and Co-CEO of Claire's Stores noted that, "Our
North American stores performed well in March in terms of comparable store
sales increases. Of course, the shift in Easter was a significant contributor
to this performance, with approximately two thirds of the gain in North
American comparable store sales attributable to the Easter shift. Having said
that, it is worth noting that on a comparable store basis, our performance
this year during the week of Easter surpassed last year's Easter week,
registering low single digit gains. Moreover, our sell through associated
with Easter merchandise was quite high."
CLAIRE'S STORES, INC.
(Monthly Sales in 000's)
TOTAL COMP. STORE
REPORTING PERIOD FY 2006 FY 2005 CHANGE CHANGE
February $88,139 $82,229 7% 6%
March $119,692 $105,782 13% 10%
Year-to-Date $207,831 $188,011 11% 8%
Business Outlook for the First Quarter -- Fiscal 2006
Comparable store sales are projected to rise by three to five percent,
following an increase of 11 percent in the first quarter of Fiscal 2005. Net
income is projected to reach $25 to $28 million, or $0.25 to $0.28 per diluted
share. For the first quarter of Fiscal 2005, net income was $27.7 million, or
$0.28 per diluted share.
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 2, 2005, Claire's Stores, Inc. operated
approximately 2,850 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., 155 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 62 stores in the Middle
East and Turkey under a licensing and merchandising agreement with Al Shaya
Co., Ltd. and five 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 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; 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
Company News On-Call:
http://www.prnewswire.com/comp/174913.html
CONTACT:
Marisa F. Jacobs, Esq., Vice President of
Corporate Communications/Investor Relations of Claire's Stores,
Inc., +1-212-594-3127, Fax: +1-212-244-4237,
marisa.jacobs@claires.com
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