CLAIRE'S STORES REPORTS FIRST QUARTER RESULTS
PEMBROKE PINES, FL., May 11, Claire's Stores, Inc. (NYSE:CLE), reported
today net income for the first quarter of fiscal 2001 was $4,027,000, or $.08
per diluted share compared with net income of $13,800,000, or $.27 per diluted
share for the first quarter of fiscal 2000.
Net sales for the first quarter ended April 29, 2000 increased 36 percent
to $232,035,000 from $170,663,000 for the same period last year. 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.
Rowland Schaefer, Claire's Chairman and Chief Executive Officer, said "We
were disappointed with the sales results for the first quarter of fiscal 2001
which resulted in lower earnings compared with the same period last year. Gross
margins were negatively impacted by the lack of leverage from rent and rent
support, the increase in apparel sales, which carry a lower gross margin, as
well as our decision to write-down approximately $8 million of inventory. I am
pleased that in a tough sales environment, we controlled our expenses and total
SG&A was better than budget on a gross basis. Our United Kingdom and European
subsidiaries were all ahead of budget from a profitability standpoint." Mr.
Schaefer added.
Pursuant to the $50 million stock repurchase program authorized on May 3,
2000 by the Company's Board of Directors, the Company has purchased to date
approximately 200,000 shares of the Company's common stock at an average price
of $17 9/16 per share.
The Company will host a conference call for the first quarter of fiscal
2001 today 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.
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, Bijoux One, Cleopatre, 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.
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For additional information:
At Claire's Stores, Inc.
Sonia Rohan
Associate Director of Investor Relations
Phone: (212) 594-3127
Fax: (212) 244-4237
E-mail: [email protected]
Note: Other Claire's Stores, Inc. press releases, a corporate profile and most
recent 10-K and
10-Q reports are available by fax at no charge. For a menu of available
material, call 1-800-CLENYSE (1-800-253-6973). For such materials via Claire's
Internet home page : http://www.clairestores.com
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<TABLE>
<CAPTION>
CLAIRE'S STORES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
THREE MONTHS % THREE MONTHS %
ENDED OF ENDED OF
29-APR-00 SALES 1-MAY-99 SALES
(In thousands, except share data)
<S> <C> <C> <C> <C>
Net sales $232,035 100.00% $170,663 100.00%
Cost of sales, occupancy
and buying expenses 128,313 55.30% 84,993 49.80%
-------- --------
103,722 44.70% 85,670 50.20%
Expenses:
Selling, general & administrative 84,889 36.60% 59,111 34.60%
Depreciation and amortization 10,495 4.50% 6,289 3.70%
Interest expense (income), net 1,996 0.90% -1,634 -1.00%
-------- --------
97,380 42.00% 63,766 37.40%
Income before income taxes 6,342 2.70% 21,904 12.80%
Income taxes 2,315 1.00% 8,104 4.70%
-------- --------
Net income $ 4,027 1.70% $ 13,800 8.10%
Net income per share:
Basic $ 0.08 $ 0.27
Diluted $ 0.08 $ 0.27
Weighted average shares outstanding:
Basic 51,139 50,854
======== =========
Diluted 51,331 51,332
======== =========
</TABLE>
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