European recovery as Claire’s profits jump
Turnaround underway at accessories retailer
Claire’s Stores has reported record second-quarter profits as it benefits from continuing strong sales in its US stores and a turnaround in its international stores.
In the three months to July 31, profits rose 48 percent to $32.7m, with same store sales up 10 per cent.
Without giving specific figures, the company said store sales in the Claire’s North America business increased in positive low double digits, in Claire’s International in positive mid single digits, and in the Icing by Claire’s clothing chain in positive high teens
Bonnie Schaefer, co-chairman and co-chief executive officer, said: “Our second fiscal quarter results reflect the convergence of three positive events, namely the continued momentum at Claire’s North America, dramatic improvement in performance at Icing by Claire’s and the initial stages of a turnaround in our international operation.
“Major shifts in merchandise and store presentation at Icing have successfully differentiated this store concept from Claire’s and drawn in the older customer being targeted; as a result sales have improved greatly since last year.
“The transfer of North American best practices to our international division is continuing to move forward and early advances in comparable store sales appear sustainable. Our task now is to continue the process, so that our performance improves in each of the countries in which we operate.”
