European sales boost Claire’s
Accessories retailer exceeds ‘modest’ forecasts
Accessories retailer Claire’s has delivered first quarter results ahead of what it said were ‘modest’ targets, helped by a continuing strong recovery in its European business.
In the three months to the end of April, total sales increased 7.5 per cent to $302.7m, with net income up 7 per cent to $29.7m.
Comparable store sales increased by five per cent, compared to an 11 per cent increase last year. By division, same store sales increased in the low single digits in Claire’s North America, in high single digits in Claire’s Europe, and mid single digits in the Icing by Claire’s chain.
Co-chairman and co-chief executive Marla Schaefer said, “Our expectations for the first quarter of Fiscal 2006 were modest in light of last year’s extraordinary first quarter performance, when net income rose by 78 percent. We are pleased that we were able to exceed our consolidated projections.”
She added: “The jewellery business is continuing to show strength and staying power and the profusion of vibrant colors among both our costume jewelry and accessory selections is being well received by customers purchasing new items to keep their wardrobes looking fresh and up to the minute.”
Bonnie Schaefer, Co-chairman and co-chief executive said: “Our European stores are continuing to make progress, and we delivered another quarter of positive growth in terms of comparable store sales.
“Inventory analysis and product testing have substantiated our belief that the major fashion trends driving our North American business are having a similar impact in Europe and on a similar time frame. We have improved our merchandise selection abroad so that in-demand styles are better represented than they were at this time last year.”
