Claire’s Stores Inc. lost almost $570 million in the fourth quarter because of impairment charges and falling consumer spending.
For the quarter ended Jan. 31, the Pembroke Pines, Fla.-based accessories chain said Wednesday it lost $569.5 million compared with net income of $15.3 million in the comparable year-ago period.
The results included pretax charges of $297 million for goodwill impairment and $227 million for intangibles and assets impairment. Excluding one-time items, earnings before interest, taxes, depreciation and amortization fell one-third to $76.4 million from $114.7 million in the comparable quarter of 2007.
Revenue in the three months fell 12.2 percent to $393 million from $447.4 million a year ago. Same-store sales declined 7.2 percent in the quarter.
“The economic turmoil that continued through the third quarter worsened in the beginning of the fourth quarter and definitely impacted sales as traffic softened and the customers stayed away from nearly any shopping experience,” chief executive officer Gene Kahn said on a conference call with investors.
Kahn said first-quarter same-store sales have been slightly negative, an indicator that sales are stabilizing.
Apollo Management LP acquired Claire’s in 2007. Though the company is no longer publicly traded, Claire’s reports quarterly results because it holds public debt. As of a Jan. 31, the company reported long-term debt of $2.37 billion versus $2.36 billion a year ago.
The accessories retailer closed 120 stores in the fourth quarter and opened 15.
For fiscal 2008, Claire’s posted a loss of $643.6 million compared with a loss of $43.1 million in the previous 12 months, which included pre- and post-acquisition figures. Sales fell 6.5 percent to $1.41 billion from $1.51 billion.
In other company news, Jim Conroy was promoted to president on April 16. He had been executive vice president since 2007.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews