PEMBROKE PINES, Fla., May 4 /PRNewswire-FirstCall/ -- Claire's Stores,
Inc. (NYSE: CLE) today reported that for the four weeks ended April 29,
2006 comparable store sales increased nine percent, in contrast to the
four-week period ended April 30, 2005 when comparable store sales decreased
two percent. Total sales during the four-week period ended April 29, 2006
increased ten percent to $104,251,000 compared with $94,877,000 for the
comparable four-week period last year.
Comparable store sales results for April 2006 compared to April 2005
were as follows:
* Claire's North America: positive low double digits
* Claire's International: positive mid single digits
* Icing by Claire's: positive high single digits
Sales for the first fiscal quarter ended April 29, 2006 increased three
percent to $311,856,000 compared to sales of $302,708,000 during last
year's first fiscal quarter. Comparable store sales for this year's first
fiscal quarter increased three percent, after achieving a five percent
increase during last year's first fiscal quarter.
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 revenues for the first quarter of Fiscal 2007 reflecting the
strengthening of the U.S. dollar compared to the first quarter of Fiscal
2006.
Bonnie Schaefer, Co-Chairman and Co-CEO of Claire's Stores stated that,
"We experienced diverse results in Europe during the month of April. Our
stores in Switzerland, Austria and Germany performed extremely well. The
United Kingdom saw a strong boost in its comparable store sales compared to
last April. The U.K.'s first fiscal quarter results, however, did not meet
our internal plan and were more in line with the generally weak U.K. retail
environment. France did not achieve our internal projections, resulting in
part from the ongoing civil unrest. We also experienced some delays in
French inventory receipts; however, improvements are expected by June.
While these two events contributed to a decrease in transactions in France,
the value of our average transaction in April 2006 was higher than in April
2005. Entering the second fiscal quarter, European inventories are in line
with expectations. They more closely mirror their U.S. counterparts, and
our jewelry sales have been building as our inventory has shifted in that
direction. We believe our product selection is very much on target in terms
of offering the looks and styles currently in demand".
Marla Schaefer, Co-Chairman and Co-CEO of Claire's Stores noted that,
"We are always pleased to deliver double digit comparable store increases
in North America, however, April results did not reach the levels needed to
offset March. In hindsight, we underestimated the impact of the Easter
shift on our North American business, leading to a shortfall in sales.
Sales did not merely shift from March to April. We believe that some
purchases typically made to accessorize wardrobes for an early Easter and
for early spring breaks were lost as customers proceeded directly to their
springtime buying. We are, however, gratified to note that feedback from
our customers indicates that our merchandise is on target and that we have
covered all of the key fashion looks of the spring season. Interest in
jewelry is remaining strong, representing the same percentage of North
American sales as in the first quarter of Fiscal 2006. As we move into our
second fiscal quarter, we are very focused on transaction levels and the
possibility that they will be impacted by gasoline prices that seem to
climb daily. For this reason, we are taking a very cautious stance in terms
of our guidance for the that quarter."
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%
April $104,251 $94,877 10% 9%
Year-to-Date $311,856 $ 302,708 3% 3%
Business Outlook for the First and Second Fiscal Quarters - Fiscal 2007
First Quarter:
Net income, initially projected to reach $30 to $32 million, or $0.30
to $0.32 per diluted share is now projected at $28 to $30 million, or $0.28
to $0.30 per diluted share. For the first quarter of Fiscal 2006, net
income was $29.7 million, or $0.30 per diluted share.
Second Quarter:
In keeping with our normal practice for issuing guidance, our second
quarter projections will be laid out in detail on May 18, 2006, when we
issue our first quarter earnings release. We do, however, expect that
certain trends we experienced during the first fiscal quarter will continue
during the second quarter. Based on those assumptions, we currently
anticipate that our net income for the second fiscal quarter will remain
essentially in line with last year's second fiscal quarter.
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 29, 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., 180 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 92 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 28, 2006. 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
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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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