Thursday November 11, 8:06 am Eastern Time
Company Press Release
SOURCE: Claire's Stores, Inc.
Claire's Stores Third Quarter Earnings Up 19%, Sales Up 16%; First Nine Months Earnings Up 42%; Sales Up 23%
PEMBROKE PINES, Fla., Nov. 11 /PRNewswire/ -- Claire's Stores, Inc. (NYSE: CLE - news) reported today that diluted earnings per share from operations for the third quarter ended October 30, 1999, increased 19 percent to $0.25, compared to $0.21 for the comparable period ended October 31, 1998. The third quarter ended October 31, 1998 includes a $.04 per share loss from discontinued operations related to the disposition of Just Nikki.
Net sales for the third quarter increased 16 percent to $182,639,000 from $157,089,000 for the third quarter of 1999. Comparable store sales decreased two percent for the third quarter.
Net sales for the first nine months of Fiscal 2000 increased 23 percent to $539,392,000 from $437,063,000 for the same period last year. Net income for the first nine months of Fiscal 2000 increased 42 percent to $47,305,000 or $.92 per diluted share, compared with $33,365,000 or $.65 per diluted share for the first nine months of Fiscal 1999. The nine month period ended October 31, 1998 included a nine cents per share loss from discontinued operations related to the disposition of Just Nikki, Inc. Comparable store sales increased six percent for the first nine months.
All figures have been restated to reflect the disposition of Just Nikki, Inc.
Rowland Schaefer, Claire's Chairman and Chief Executive Officer, said, ''Although sales results for the third quarter were negatively impacted by inventory shortages caused by merchandising errors, we are pleased that sales remained significantly ahead of the third quarter last year. Our inventory levels have been corrected and we are well positioned heading into the holiday season. We look forward to the fourth quarter returning to positive same store sales comparisons.''
Mr. Schaefer also noted that at the end of the third quarter the company had a total of 2,239 stores in operation. These comprised 1,712 Claire's Accessories and The Icing Stores in North America, 250 accessories stores in Claire's U.K., 80 stores in Japan, 56 stores in Europe. Mr. Rags had 139 stores and the company opened two apparel stores as a test concept under the Velvet Pixies name. The company has opened 230 stores so far this fiscal year with an additional 62 stores to be opened in the fourth quarter.
Mr. Schaefer added that the Claire's management team is currently meeting with the Venator and Afterthoughts' management teams to continue working on the various phases of the integration of the two companies.
Claire's Stores, Inc., specializing in moderately priced fashion accessories, currently owns and operates more than 2200 stores in 50 states, the Caribbean, Canada, Japan, the United Kingdom, Switzerland, Austria and Germany.
This release contains ''forward-looking statements'' that represent the company's expectations or beliefs with regard 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. These factors include, without limitation, changes in consumer preferences, competition and economic conditions.
CLAIRE'S STORES, INC. AND SUBSIDIARIES
STATEMENTS OF INCOME
Restated to Reflect Just Nikki as a Disc. Op.
(UNAUDITED)
THREE MONTHS ENDING
Oct. 30, 1999 Oct. 31, 1998
Net sales $182,639,000 100.0% $157,089,000 100.0%
Cost of sales, occupancy
and buying expenses 92,598,000 50.7% 79,720,000 50.7%
90,041,000 49.3% 77,369,000 49.3%
Expenses:
Selling, general
and administrative 64,826,000 35.5% 53,289,000 33.9%
Depreciation and
amortization 6,891,000 3.8% 5,485,000 3.5%
Interest income, net (1,648,000) -0.9% (1,623,000) -1.0%
Loss (gain) on investments 0 0.0% 0 0.0%
70,069,000 38.4% 57,151,000 36.4%
Income from continuing
ops. before income taxes 19,972,000 10.9% 20,218,000 12.9%
Income taxes 7,281,000 4.0% 7,502,000 4.8%
Income from
continuing operations 12,691,000 6.9% 12,716,000 8.1%
Discontinued operations:
Loss from discontinued
operations (less applicable
income taxes) 0.0% 2,023,000 1.3%
Loss on disposal from
discontinued operations
(less applicable income
taxes)
Net loss from discontinued
operations 0 0.0% 2,023,000 1.3%
Net income $12,691,000 6.9% $10,693,000 6.8%
Net income (loss) per share:
Basic:
From continuing ops $0.25 $0.25
From discontinued ops 0.00 0.04
Net income $0.25 $0.21
Diluted:
From continuing ops $0.25 $0.25
From discontinued ops 0.00 0.04
Net income $0.25 $0.21
Weighted average shares
outstanding:
Basic 51,015,000 50,677,000
Diluted 51,243,000 51,047,000
CLAIRE'S STORES, INC. AND SUBSIDIARIES
STATEMENTS OF INCOME
Restated to Include Lux Corp. and Reflect Just Nikki as a Disc. Op.
(UNAUDITED)
NINE MONTHS ENDING
Oct. 30, 1999 Oct. 31, 1998
Net sales $539,392,000 100.0% $437,063,000 100.0%
Cost of sales, occupancy
and buying expenses 269,191,000 49.9% 218,910,000 50.1%
270,201,000 50.1% 218,153,000 49.9%
Expenses:
Selling, general
and administrative 185,253,000 34.3% 147,171,000 33.7%
Depreciation
and amortization 19,614,000 3.6% 15,783,000 3.6%
Interest income, net (4,640,000) -0.9% (4,780,000) -1.1%
Loss (gain) on
investments (3,929,000) -0.7% 0 0.0%
196,298,000 36.4% 158,174,000 36.2%
Income from continuing
ops. before income taxes 73,903,000 13.7% 59,979,000 13.7%
Income taxes 26,598,000 4.9% 22,200,000 5.1%
Income from continuing
operations 47,305,000 8.8% 37,779,000 8.6%
Discontinued operations:
Loss from discontinued
operations (less
applicable income taxes) 0.0% 4,414,000 1.0%
Loss on disposal from
discontinued operations
(less applicable income
taxes)
Net loss from discontinued
operations 0 0.0% 4,414,000 1.0%
Net income $47,305,000 8.8% $33,365,000 7.6%
Net income (loss) per share:
Basic:
From continuing ops $0.93 $0.75
From discontinued ops 0.00 0.09
Net income $0.93 $0.66
Diluted:
From continuing ops $0.92 $0.74
From discontinued ops 0.00 0.09
Net income $0.92 $0.65
Weighted average shares
outstanding:
Basic 50,934,000 50,604,000
Diluted 51,331,000 51,086,000
CLAIRE'S STORES AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
CONSOLIDATED
Oct. 30, 1999 Oct. 31, 1998
(Restated)
Assets
Current Assets:
Cash and equivalents $109,088,000 $90,815,000
Short-term investments 16,547,000 13,852,000
Inventories 98,674,000 84,393,000
Prepaid expenses and
other current assets 32,725,000 26,595,000
Total current assets 257,034,000 215,655,000
Property and Equipment:
Land and building 17,276,000 13,579,000
Furniture, fixtures and equipment 141,353,000 116,043,000
Leasehold improvements 102,843,000 88,260,000
261,472,000 217,882,000
Less accumulated depreciation
and amortization (131,709,000) (109,197,000)
129,763,000 108,685,000
Goodwill, net 26,295,000 566,000
Other Assets 26,455,000 22,795,000
$439,547,000 $347,701,000
CLAIRE'S STORES AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
CONSOLIDATED
Oct. 30, 1999 Oct. 31, 1998
(Restated)
Liabilities and Stockholders' Equity
Current Liabilities:
Current portion of debt $821,000
Trade accounts payable 35,574,000 $29,060,000
Income taxes payable 7,317,000 5,383,000
Dividends payable 2,044,000 55,000
Accrued expenses 23,420,000 18,336,000
Total current liabilities 69,176,000 52,834,000
Long-Term Liabilities:
Long-term debt 0 0
Deferred credits 13,055,000 10,461,000
Total long-term Liabilities 13,055,000 10,461,000
Stockholders' equity:
Common stock - par 2,415,000 2,394,000
Class A stock - par value 144,000 145,000
Additional paid-in capital 27,709,000 22,771,000
Other comprehensive inc. (888,000) (3,111,000)
Retained earnings 328,388,000 262,659,000
357,768,000 284,858,000
Less Treasury stock at cost, (452,000) (452,000)
357,316,000 284,406,000
$439,547,000 $347,701,000
SOURCE: Claire's Stores, Inc. |
