Claire’s expects European recovery in second half of year
New product ranges expected to boost sales
Accessories retailer Claire’s expects its underperforming European stores to show a sales recovery in the second half of the financial year as it introduces new product ranges in a drive to emulate the strong sales growth being seen in its US operation.
With Claire’s first quarter ending on May 1, the timing of the anticipated sales recovery will coincide with the crucial Christmas and New Year sales period.
Claire’s problems centre on stores in the UK and France, which make up the majority of its European stores, and have been underperforming for some time.
The retailer said that same store sales for Claire’s Europe declined in the ‘mid-single digits’ in the three months to May 1, compared to double digit growth in both the core Claire’s North American chain as well as the Icing by Claire’s clothing chain.
Across the first quarter, sales increased 17 per cent to $281.6m, with total comparable store up 11 per cent.
Co-chairman and co-chief executive Bonnie Schaefer said: “Last year, a great deal of work was carried out to differentiate our Icing by Claire’s stores from the North American Claire’s stores and to feature merchandise that is most appealing to Icing’s core customer: young women between the ages of 17 to 27.
“During the second half of that year, Icing began to show significant improvement as measured by increases in comparable store sales. We are continuing our efforts to refine the Icing by Claire’s concept and believe its healthy performance can be sustained.
“Now, we are undertaking the same approach in Europe and it remains our belief that comparable store sales in Europe will begin to show improvement in the second half of the fiscal year.”
