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MONROVIA, Calif.--(BUSINESS EDITORS)--Jan. 8, 1998--Barry's
Jewelers Inc., one of the nation's largest independent retailers of
fine jewelry, Thursday reported a strong 15.5 percent increase in
same store sales for the month of December 1997 from last year.
December sales results were 6.4 percent greater than projections filed
in July of last year.
Barry's reported total net sales for the month of December 1997
of $27,991,000 generated by its 128 stores, compared with $30,538,000
last year produced by its 174 stores then in operation. Sales for
the 128 stores open in both December 1997 and 1996 were $27,991,000
and $24,240,000, respectively. This reflects a total net sales
decrease of 8.3 percent with a same store sales increase of 15.5
percent.
For the seven-month period ended December 1997, total net sales
decreased by 14.1 percent to $73,864,000 from $85,987,000 last year.
Same store sales for this period rose from $67,304,000 to
$62,873,000, a 7 percent increase.
In July 1997, the company filed projections with the United States
Bankruptcy Court. These filings projected sales of $26,302,000 for
the month of December 1997 and $71,359,000 for the seven months ended
December 1997. The actual results exceeded projected results by
$1,689,000 or 6.4 percent for the month and $2,505,000 or 3.5 percent
for the seven months ended December 1997.
"We are extremely pleased with the sales results for December
and the year-to-date increase," commented Samuel J. Merksamer,
president and chief executive officer. "These results confirm the
successful repositioning of the company as a mainstream retail
jewelry chain and validate our decision to shift the merchandising
strategy toward higher quality products and to target a middle
income, fashion and gift conscious customer. The December sales
results are especially encouraging as they represent the first month
in which we have fully re-merchandised the stores."
Barry's Jewelers filed a petition for chapter 11 protection in
Los Angeles on May 11, 1997. The case was assigned to the Honorable
Vincent Zurzolo of the Central District of Los Angeles.
The current management team, led by Merksamer, has been in place
since February 1997. Since then management has, as a part of its
turnaround strategy, closed 41 underperforming stores, reduced
corporate overhead, increased the provision for doubtful accounts by
$7 million (at fiscal year ended May 31, 1997), implemented an
integrated targeted marketing program and is currently in the
process of re-negotiating store leases and working to modernize its
management information systems, including a new point-of-sale system
and a new merchandise planning system. |
