Claire’s says UK profits on track
Like-for-like decline in line with expectations
Accessories retailer Claire’s has said its UK performance is in line with its expectations despite a continuing decline in like-for-like sales.
The US based company reported a negative mid-single digit decline in same store sales during March for the Claire’s International business.
Bonnie Schaefer, co-chairman and co-CEO of Claire’s Stores said: “Profitability levels in our international division, consisting of stores in Europe, Ireland and the United Kingdom, continue to meet expectations. While comparable store sales continue to fluctuate each month, they are remaining in negative single digit territory.
“Last year, our UK based stores sold approximately $1.1m of merchandise in connection with a bi-annual celebration. The absence of that celebration this year negatively impacted our March same store sales, but will have a beneficial effect next year. If the celebration had occurred this fiscal year and generated the same $1.1m of sales, comparable store sales in our international division would have declined by low single digits versus the mid single digit decline reported.”
Schaefer said the retailer is continuing to implement changes to the international business. “These changes span many aspects of our operations, including such diverse activities as inventory selection, product mix, planogram implementation and customer service.
“Measurable progress has been made in those areas where sufficient time has passed for changes to take effect. We expect this progress to continue and anticipate improved comparable store sales during the second half of the fiscal year.”
[img r]icingbyclaires.jpg[/img]With the North American Claire’s stores showing a same store increase in the positive mid teens, and the Icing by Claire’s fashion chain a positive low twenties increase, total comparable store sales for the five weeks ended April 3 increased by ten per cent. Total sales during the five weeks increased 16 per cent to $105,782,000.
Marla Schaefer, co-chairman and co-CEO, said: “The momentum that began in February when significant amounts of spring merchandise were placed in our North American stores continued throughout March as new inventory flowed into both Claire’s and Icing by Claire’s.
“Our customers are reacting enthusiastically to the wide range of colours and styles we are offering. Traffic remains strong at Claire’s and Icing by Claire’s, with brisk demand for both jewellery and accessories.”
