Thursday May 4, 9:31 am Eastern Time
Company Press Release
SOURCE: Claire's Stores, Inc.
Claire's Stores Announces April Sales and Share Repurchase Program
Claire's Comfortable with Analysts' Second Quarter Estimates
PEMBROKE PINES, Fla., May 4 /PRNewswire/ -- Claire's Stores, Inc. (NYSE: CLE - news) reported today sales for the four weeks ended April 29, increased 47 percent to $80,451,000 compared with $54,674,000 reported for the four weeks ended May 1, 1999. Same store sales increased 6 percent for the month on a consolidated basis. The fashion accessory division increased 5 percent and Mr. Rags increased 21 percent on a same store sales basis.
For the three months ended April 29, the first quarter of fiscal 2001, the Company reported sales increased 36 percent to $232,027,000 compared with fiscal 2000 first quarter sales of $170,494,000. First quarter same store comparisons decreased 4 percent on a consolidated basis. The fashion accessory division decreased 5 percent while Mr. Rags increased 18 percent on a same store sales basis.
The Company announced that it expects to report earnings of $0.08 per fully diluted share for the first quarter of fiscal 2001, the 13 weeks ended April 29, compared to $0.27 per share for the 13 week period ended May 1, 1999. The additional shortfall in earnings from our guidance of $0.18 on April 12 is due to continued lack of sales momentum which resulted in a high inventory position. After carefully analyzing our inventory, management feels an additional inventory reserve of approximately $8 million is needed and feels it is the right decision long term to position us for a strong second half. The Company remains comfortable with analysts' consensus estimates of $0.38 for the second quarter of fiscal 2001.
Rowland Schaefer, Chairman and Chief Executive Officer of Claire's, said ``We were disappointed with the lack of sales momentum during the first quarter of fiscal 2001. However, we expect sales momentum to pick up during the back half of the second quarter. We are excited with the integration of Afterthoughts, which is ahead of schedule and should be completed by June 1. We were also pleased with the performance posted by Mr. Rags which has shown a significant improvement from last year.'' Mr. Schaefer added.
Separately, Rowland Schaefer announced that the Company's Board of Directors had authorized the Company to repurchase up to $50 million of its Common Stock. Repurchases will be funded from cash on hand and operating cash flow.
Rowland Schaefer, stated, ``We continue to be very optimistic about Claire's future, and the Board of Directors believes that the stock repurchase program will serve to enhance shareholder value. It will also permit us to take advantage of current low stock prices while maintaining our financial flexibility to pursue our future planned growth opportunities.''
The Company plans to release final results for the first quarter of fiscal 2001 on May 11, 2000, at approximately 6:30 a.m. with a conference call to follow at 10:00 a.m. (EST). The call in number is 888-769-8708 and the password is Claires (2524737). A replay will be available through Monday May 22nd. The replay number is 888-568-0500 and the password is 25247. Guidance for the second quarter will be given on that call.
Claire's Stores, Inc.
(Monthly Sales in 000's)
Reporting Change FY 2001 FY 2000 TOTAL SAME STORE
CHANGE CHANGE
February $ 64,616 $ 46,807 38% (3)%
March 86,960 69,013 26% (11)%
April 80,451 54,674 47% 6%
Year to Date 232,027 170,494 36% (4)%
Claire's Stores, Inc., the leading mall-based retailer of popular-priced pre-teen and teen accessories, costume jewelry and apparel, currently operates more than 3,000 stores under the following trade names: Claire's Accessories, Afterthoughts, the Icing, Velvet Pixies and Mr. Rags. The stores are located throughout the United States, the Caribbean, Canada, Japan, United Kingdom, Switzerland, Austria, Germany and France.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This 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 for pre-teen and teen apparel and accessories, competition, and economic conditions in the United States.
SOURCE: Claire's Stores, Inc. |
