PEMBROKE PINES, Fla., May 19 /PRNewswire-FirstCall/ -- Claire's Stores,
Inc. (NYSE: CLE) today announced financial results for the first quarter of
Fiscal 2006 and provided guidance relating to the second quarter of Fiscal
2006 and the full fiscal year.
First Quarter
Results for the first quarter of Fiscal 2006, which ended April 30, 2005, were
as follows: Net income rose seven percent to $29.7 million compared to $27.7
million during the first quarter of Fiscal 2005, which ended May 1, 2004. On
a per share basis, diluted net income during the first quarter of Fiscal 2006
rose seven percent to $0.30 from $0.28 per share.
For the first quarter of Fiscal 2006, net sales increased 7 1/2 percent to
$302.7 million from $281.6 million for the same period last year. Comparable
store sales for the first quarter of Fiscal 2006 increased five percent, after
achieving an 11 percent increase in last year's first fiscal quarter.
First quarter comparable store sales by brand were as follows:
* Claire's North America: positive low single digits
* Claire's Europe: positive high single digits
* Icing by Claire's: positive mid single digits
Commenting on first quarter results, Co-Chairman and Co-Chief Executive
Officer Marla Schaefer said, "Our expectations for the first quarter of Fiscal
2006 were modest in light of last year's extraordinary first quarter
performance, when net income rose by 78 percent. We are pleased that we were
able to exceed our consolidated projections with respect to net income and
diluted earnings per share. The jewelry business is continuing to show
strength and staying power and the profusion of vibrant colors among both our
costume jewelry and accessory selections is being well received by customers
purchasing new items to keep their wardrobes looking fresh and up to the
minute."
Bonnie Schaefer, Co-Chairman and Co-Chief Executive Officer, offered
additional commentary on the first quarter of Fiscal 2006. "Our European
stores are continuing to make progress, and we delivered another quarter of
positive growth in terms of comparable store sales. Inventory analysis and
product testing have substantiated our belief that the major fashion trends
driving our North American business are having a similar impact in Europe and
on a similar time frame. We have improved our merchandise selection abroad so
that in-demand styles are better represented than they were at this time last
year."
Store Count: End of First Fiscal Quarter:
April 30, 2005 May 1, 2004
Claire's North America 1,678 1,664
Claire's Europe 729 705
Icing by Claire's 445 459
Claire's Nippon 161 131
Total 3,013 2,959
Business Outlook for the Second Quarter and Full Year -- Fiscal 2006
Second Quarter:
For the second quarter of Fiscal 2006, we are estimating revenues between
$317 and $323 million, an increase of four to six percent. Comparable store
sales are projected to rise by two to four percent. This follows an increase
of ten percent in the second quarter of Fiscal 2005. Net income is projected
to reach $30 to $33 million, or $0.30 to $0.33 per diluted share.
Gross margins are anticipated to range between flat to 30 basis points
below last year's second fiscal quarter. SG&A is projected to increase 50 to
70 basis points as a percentage of sales during that same period.
Full Year:
For Fiscal 2006 in its entirety, revenues are projected to grow by
approximately five to seven percent to $1.34 billion to $1.37 billion.
Comparable store sales are expected to increase by two to four percent.
Gross margins are anticipated to improve by 20 to 30 basis points. SG&A is
projected to decrease as a percentage of sales, leading to a 30 to 50 basis
point improvement.
Income from continuing operations is projected to be within a range of
$152 million to $163 million, or $1.54 to $1.65 on a diluted per share basis.
Quarterly Dividend
The Board of Directors has declared the regular quarterly cash dividend of
$0.10 per share payable on the Common Stock and $0.05 per share payable on the
Class A Common Stock. Payment will be made on June 17, 2005 to shareholders
of record on June 7, 2005.
Conference Call Information
The Company will host its first quarter conference call on May 19, 2005,
at 10:00 a.m. (EDT). The call in number is 210-795-9101 and the password is
"Claires." A replay will be available through May 27, 2005. The replay number
is 203-369-1969 and the password is 25247. The conference call is also being
archived until May 27th on the Company's corporate website at
http://www.clairestores.com, and can be accessed by clicking on the
"Conference Calls" link located under "Financial Information".
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 30, 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., 161 stores in Japan as a 50:50 joint venture with AEON,
Co., Ltd. (fka JUSCO, Co. Ltd.), a $32 billion specialty retailer
headquartered in Japan. The Company also licenses 65 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.
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, 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; 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 Internet home
page: http://www.clairestores.com.
CLAIRE'S STORES, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
THREE MONTHS ENDED
April 30, 2005 May 1, 2004
Net sales $302,708,000 100.0% $281,591,000 100.0%
Cost of sales, occupancy and
buying expenses 138,695,000 45.8% 125,524,000 44.6%
Gross profit 164,013,000 54.2% 156,067,000 55.4%
Other expenses (income):
Selling, general and
administrative 110,462,000 36.5% 104,245,000 37.0%
Depreciation and
amortization 12,348,000 4.1% 10,659,000 3.8%
Interest expense 55,000 0.0% 30,000 0.0%
Interest and other income (1,961,000) (0.6%) (1,210,000) (0.4%)
120,904,000 39.9% 113,724,000 40.4%
Income before income taxes 43,109,000 14.2% 42,343,000 15.0%
Income taxes 13,407,000 4.4% 14,651,000 5.2%
Net income $29,702,000 9.8% $27,692,000 9.8%
Net income per share:
Basic:
Net Income per share $0.30 $0.28
Diluted:
Net Income per share $0.30 $0.28
Weighted average number of
shares outstanding:
Basic 98,994,000 98,916,000
Diluted 99,358,000 99,241,000
CLAIRE'S STORES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
April 30, 2005 May 1, 2004
ASSETS
Current assets:
Cash and cash equivalents $316,077,000 $217,539,000
Inventories 117,077,000 107,918,000
Prepaid expenses and other
current assets 69,840,000 51,915,000
Total current assets 502,994,000 377,372,000
Property and equipment:
Land and building 18,151,000 18,151,000
Furniture, fixtures and equipment 242,367,000 228,690,000
Leasehold improvements 219,416,000 190,406,000
479,934,000 437,247,000
Less accumulated depreciation and
amortization (271,649,000) (247,626,000)
208,285,000 189,621,000
Intangible assets, net 53,846,000 43,592,000
Other assets 13,716,000 15,834,000
Goodwill 200,989,000 198,868,000
268,551,000 258,294,000
Total assets $979,830,000 $825,287,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $59,307,000 $51,370,000
Income taxes payable 27,486,000 24,946,000
Accrued expenses 74,174,000 68,646,000
Total current liabilities 160,967,000 144,962,000
Long-term liabilities:
Deferred tax liability 23,740,000 13,345,000
Deferred rent expense 20,094,000 17,657,000
Total long-term liabilities 43,834,000 31,002,000
Stockholders' equity:
Class A stock - par value $0.05
per share 256,000 260,000
Common stock - par value $0.05
per share 4,703,000 4,687,000
Additional paid-in capital 51,418,000 49,413,000
Accumulated other comprehensive
income, net of tax 26,387,000 15,046,000
Retained earnings 692,265,000 579,917,000
Total stockholders' equity 775,029,000 649,323,000
Total liabilities and
stockholders' equity $979,830,000 $825,287,000
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, 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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