PEMBROKE PINES, Fla., Oct. 7 /PRNewswire-FirstCall/ -- Claire's Stores,
Inc. (NYSE: CLE) reported today that comparable store sales for the five weeks
ended October 2, 2004 increased ten percent after increasing seven percent
during the corresponding five-week period last year. Total sales during the
five-week period ended October 2, 2004 increased 13 percent to $105,884,000
compared with $93,911,000 for the comparable five-week period last year.
Comparable store sales results for September 2004 compared to September
2003 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 eight months of Fiscal 2005, sales increased 15 percent to
$791,657,000 compared to sales of $686,236,000 for the comparable period last
year. Year to date, comparable store sales increased ten percent compared
with an increase of seven percent during the first eight months of Fiscal
2004.
Bonnie Schaefer, Co-Chairman and Co-CEO of Claire's Stores, Inc. said, "We
are pleased to be reporting another positive month of comparable store sales
in our international operation, which consists of our stores in the United
Kingdom, Ireland, France, Switzerland, Austria and Germany (the latter three,
collectively referred to as SAG). SAG is continuing to perform extremely well
and to serve as the venue in which we have made the most substantial progress
in our international rollout of our best practices and procedures. Our
operations in the United Kingdom and Ireland exceeded our internal plan,
providing us with further evidence that our activities there are driving
sales. France remains a work in progress. However, we are seeing improved
results and we remain optimistic about its future."
Marla Schaefer, Co-Chairman and Co-CEO of Claire's Stores, Inc. said, "Our
North American performance in September was characterized by a swing in
business. As expected, we benefited from the shift of Labor Day into
September. At the same time, the disruption caused by the various hurricanes
plus unseasonably warm temperatures in certain regions of the country
negatively impacted sales of fall merchandise. Please note that business lost
due to hurricane related store closures does not affect our comparable store
sales calculations, since closed stores are excluded from the calculation.
However, sales were impacted by a large number of store closures and
diminished store traffic in the days leading up to and following the various
hurricanes hitting the eastern part of the country."
In light of these events, the Company now expects consolidated comparable
store sales for the third fiscal quarter to be eight to nine percent compared
to the nine to ten percent guidance previously issued. Third quarter revenues
are now projected to be in the range of $297 to $300 million. Gross margins
for the quarter are expected to come in slightly higher than planned and as a
result, the Company is continuing to project net income for the quarter at $27
to $29 million, or $0.27 to $0.29 per diluted share. The Company is leaving
fourth quarter guidance unchanged.
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%
July $98,824 $85,619 15% 9%
August $98,990 $87,620 13% 7%
September $105,884 $93,911 13% 10%
Year-to-Date $791,657 $686,236 15% 10%
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 September 30, 2004, Claire's Stores, Inc. operated
approximately 2,830 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., 142 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. and
two 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; 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
http://www.claires.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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