PEMBROKE PINES, Fla., Sept. 1 /PRNewswire-FirstCall/ -- Claire's Stores,
Inc. (NYSE: CLE) today reported that for the four weeks ended August 27, 2005
comparable store sales rose ten percent compared to last August, when
comparable store sales rose seven percent. Total sales during the four-week
period ended August 27, 2005 increased twelve percent to $110,717,000 compared
with $98,990,000 for the comparable four-week period last year.
Comparable store sales results for August 2005 compared to August 2004
were as follows:
-- Claire's North America: positive low double digits
-- Claire's International: positive mid single digits
-- Icing by Claire's: positive mid teens
For the first seven months of Fiscal 2006, sales increased eight percent
to $738,277,000 compared to sales of $685,804,000 for the comparable period
last year. Year to date, comparable store sales increased six percent
compared with an increase of ten percent during the first seven months of
Fiscal 2005.
Bonnie Schaefer, Co-Chairman and Co-CEO stated that, "Business in our
International division remained strong during the month of August, as
customers took advantage of sales and also began to supplement their wardrobes
with new items in advance of returning to school. We are finding that the
bohemian look, which is very hot in North America, has international appeal as
well and that the response to our bohemian jewelry and accessories is
enthusiastic. Fiscal 2006 is the first time we have undertaken a program of
major store remodels in Europe, and the boost in sales following the
completion of a remodel is also contributing to our international results.
Separately, we are very pleased to note that our first store in Holland, which
is located in Nijmegan, will be opening this week. This marks the beginning
of our expansion into that country."
Marla Schaefer, Co-Chairman and Co-CEO of Claire's Stores noted that, "Our
North American Claire's stores as well as our Icing by Claire's stores each
performed above our internal expectations during August. Our cautious stance
was based, in part, on last year's performance, when we did not see a pick up
in back to school business as strong as in prior years. This year, however,
sales in the back half of August accelerated significantly, leading to the
strong comparable store sales results we reported today and to our decision to
increase our guidance with respect to projected third quarter results. Jewelry
and accessories are each performing well, and our assortments of bohemian,
burnished metals, metallic meshes and bling, to name a few of our more popular
items, are clearly on target with the tastes of our customers."
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%
April $94,962 $ 93,580 1% (2%)
May $94,593 $ 89,239 6% 3%
June $124,336 $116,757 6% 4%
July $105,838 $99,227 7% 7%
August $110,717 $98,990 12% 10%
Year-to-Date $738,277 $685,804 8% 6%
Third Quarter Guidance
For the third quarter of Fiscal 2006, we are now estimating revenues
between $311 to $317 million, an increase of five to seven percent.
Comparable store sales are now projected to rise by four to six percent for
the quarter. This follows an increase of nine percent in the third quarter of
Fiscal 2005. Net income is projected to reach $28 to $31 million, or $0.28 to
$0.31 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 August 27, 2005, Claire's Stores, Inc. operated
approximately 2,855 stores in the United States, Canada, Puerto Rico, the
Virgin Islands, the United Kingdom, Ireland, France, Switzerland, Austria,
Germany and Spain. Claire's Stores, Inc. operates through its subsidiary,
Claire's Nippon, Co., Ltd., 166 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 72 stores in the Middle
East and Turkey under a licensing and merchandising agreement with Al Shaya
Co., Ltd. and six 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
Company News On-Call:
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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