PEMBROKE PINES, Fla., July 8 /PRNewswire-FirstCall/ -- Claire's Stores,
Inc. (NYSE: CLE) reported today that comparable store sales for the five weeks
ended July 3, 2004 increased 11 percent after increasing four percent during
the corresponding five-week period last year. Total sales during the
five-week period ended July 3, 2004 increased 16 percent to $116,757,000
compared with $101,072,000 for the comparable five-week period last year.
Comparable store sales results for June 2004 compared to June 2003 were as
follows:
* Claire's North America: positive low teens
* Claire's International: positive mid single digits
* Icing by Claire's: positive high teens
Bonnie Schaefer, Co-Chairman and Co-CEO of Claire's Stores, Inc. said, "We
are pleased that our efforts overseas have given rise to the reported
improvement in comparable store sales. We have repeatedly stated that we are
in the midst of a comprehensive overview of our international business and
that numerous changes were being implemented. We do not expect to see the
full impact of our actions until the second half of the fiscal year, but it is
now clear that real progress is being made which we believe is both
sustainable and transferable to each of the countries that make up the
international division."
Marla Schaefer, Co-Chairman and Co-CEO of Claire's Stores, Inc. said, "The
double digit performance of our North American business is continuing, with
sales driven by jewelry and accessory selections that are providing customers
with the looks they are seeking at attractive prices. Jewelry continues to be
a great seller across the board, with interest as strong as it has been all
year. Summer accessories such as sunglasses, flip flops and temporary tattoos
are also selling well. Our back to school items will debut later this month,
as we are setting that plan-o-gram in mid July."
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%
Year to Date $487,959 $419,086 16% 11%
Business Outlook for the Second Quarter and Full Year - Fiscal 2005
Second Quarter:
For the second quarter of Fiscal 2005, we are increasing our revenue
estimates to between $300 and $302 million, representing an increase of 13 to
14 percent over the same period last year. Comparable store sales are
projected to rise by 9 to 10 percent. This follows a comparable store sales
increase of five percent in the second quarter of Fiscal 2004. Net income is
projected to reach approximately $30 to $31 million, or $0.31 to $0.32 per
diluted share.
Full Year:
For Fiscal 2005 in its entirety, the Company has revised its projections
upward in light of the strong performance year to date. The Company is now
projecting that revenues will grow by approximately 12 to 13 percent to
$1.24 billion to $1.26 billion and that diluted EPS will reach $1.44 to
$1.48 per share, versus $1.23 per share last year (before giving effect to the
one time charge attributable to the retirement package granted to the Chairman
Emeritus). Comparable store sales are expected to grow by five to six
percent.
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 July 3, 2004, Claire's Stores, Inc. operated
approximately 2,840 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., 133 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 55 stores in the Middle
East under a licensing and merchandising agreement with Al Shaya Co., Ltd.
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.
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 conditions; currency fluctuations and exchange
rate adjustments; 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.
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 and Investor Relations, Claire's Stores,
Inc., +1-212-594-3127, Fax: +1-212-244-4237,
marisa.jacobs@claires.com
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