PEMBROKE PINES, Fla., Nov. 2 /PRNewswire-FirstCall/ -- Claire's Stores,
Inc. (NYSE: CLE) today reported that for the four weeks ended October 28,
2006 comparable store sales decreased one percent compared to last October,
when comparable store sales rose eight percent. Total sales during the
four-week period ended October 28, 2006 increased five percent to
$105,221,000 compared with $100,165,000 for the comparable four-week period
last year.
Comparable store sales results for October 2006 compared to October
2005 were as follows:
- Claire's North America: flat
- Claire's International: flat
- Icing by Claire's: negative high single digits
Please note that our comparable store sales numbers are calculated in
local currencies. Total sales numbers give effect to the impact of foreign
exchange.
Sales for the third fiscal quarter, ended October 28, 2006, increased
six percent to $347,503,000, compared with $327,259,000 during last year's
third fiscal quarter. Comparable store sales this fiscal quarter were flat,
compared to a nine percent increase during the third quarter of Fiscal
2006.
For the first nine months of Fiscal 2007, sales increased six percent
to $1,008,484,000 compared to $955,009,000 for the comparable period last
year. Year to date, comparable store sales increased two percent compared
with an increase of six percent during the first nine months of Fiscal
2006.
Bonnie Schaefer, Co-Chairman and Co-CEO stated that, "We are encouraged
to see our International comparable store sales showing modest improvement.
We have begun the process of adjusting prices on certain items in an effort
to present our customers with the same value propositions we offer in North
America. Customers are responding favorably and we are continuing to refine
our pricing strategy as new inventory is introduced in our stores. Of
course, we remain cognizant of the fact that some of our European projects
are still in early stages of execution and that we must be patient before
we see a return to healthy comparable store sales that can be sustained
over the long term."
Marla Schaefer, Co-Chairman and Co-CEO noted that, "What we are seeing
this fall is that our value priced items are clearly driving the business,
both at Claire's and Icing by Claire's. This creates tough comparisons
against last year's Bohemian trend, which in general consisted of items
that carried higher prices than this season's most popular items. The
current value pricing on basics at Claire's has been a major factor leading
to flat sales this month, while Icing by Claire's sales have suffered due
to this division being more fashion driven. The nature of retail being
cyclical, we expect the current 'value driven basics' atmosphere to change
as we approach spring, with its emphasis on color and shiny metals and we
are looking forward to robust sales of our seasonal merchandise offerings."
CLAIRE'S STORES, INC.
(Monthly Sales in 000's)
REPORTING FY 2007 FY 2006 TOTAL COMP. STORE
PERIOD CHANGE CHANGE
February $90,939 $88,139 3% 4%
March $116,666 $119,692 -3% -3%
April $104,251 $94,877 10% 9%
May $102,562 $94,593 8% 4%
June $132,514 $124,336 7% 2%
July $114,049 $106,113 7% 2%
August $116,774 $110,728 5% 1%
September $125,508 $116,366 8% 1%
October $105,221 $100,165 5% -1%
Year-to-Date $1,008,484 $955,009 6% 2%
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 adult females 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 October 28, 2006,
Claire's Stores, Inc. operated approximately 2,985 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., approximately 190 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
approximately 110 stores in the Middle East and Turkey under a licensing
and merchandising agreement with Al Shaya Co., Ltd. and seven 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.prnewswire.com/comp/174913.html /
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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