NEW YORK — Claire’s Stores Inc. moved back into the black in its second quarter.
This story first appeared in the August 28, 2002 issue of WWD. Subscribe Today.
For the three months ended Aug. 3, income was $16.9 million, or 35 cents a diluted share, against a loss of $6 million, or 12 cents, in the year-ago quarter. The company said that year-ago figures were restated to adjust for the sale of the Mr. Rags men’s wear operation.
Sales increased 7.9 percent to $238.7 million from $221.3 million. Comparable-store sales were up by mid-single digits in Claire’s North American stores and by low-single digits at Icing by Claire’s. Claire’s European stores posted comp declines in the low-single digits.
Rowland Schaefer, chairman, president and chief executive officer, said in a statement, “Even though sales trends continue to be weak at many retailers, we continue to produce positive same-store sales trends in the low-single digits for both Claire’s Accessories North America and Icing by Claire’s for August. “
The ceo added, “Given the current economic environment with weak mall traffic and low consumer confidence, we remain somewhat cautious with assumptions for the third quarter. We anticipate same-store sales will continue their positive low-single-digits trends for the quarter.”
He said that the firm was comfortable increasing consensus estimates for the third-quarter from continuing operations to 11 cents a share, up by 1 cent.
For the six months, income catapulted to $25.2 million, or 52 cents, about 14 times the $1.8 million, or 4 cents, registered last year. Sales rose 3.4 percent to $449.1 million from $434.2 million.