Jewelry retailer Finlay Enterprises Inc. reported a higher third-quarter loss on Thursday, partly because of the acquisition of Bailey Banks & Biddle. Concerns about the firm’s finances pushed down the share price.
For the three months ended Nov. 1, the loss grew to $20.8 million, or $2.23 a share, from $7.5 million, or 82 cents, in the year-ago quarter. Results from the prior year exclude continuing operations figures from Parisian stores, which were acquired by Belk Inc. In addition, the company expected an interim loss from its acquisition of Bailey Banks & Biddle from Zale Corp. in November 2007.
Sales grew 12.9 percent to $160.3 million from $141.9 million. Comparable-store sales fell 14.9 percent, and by 13.5 percent excluding the Macy’s and Lord & Taylor leased stores that are scheduled to close at yearend.
During a conference call, Bruce Zurlnick, chief financial officer, said the debt-restructuring transaction that closed on Nov. 26 “enhances” the firm’s liquidity and increases its availability under its revolving credit facility. The firm received $20 million from the transaction, and certain shareholders now own new second lien secured notes that do not require interest payments for two years.
Moody’s Investors Service, however, viewed the restructuring as a “distressed exchange” and downgraded the company’s rating to signify that a default had occurred on its rated securities.
Finlay shares ended the day at 5 cents, down 7 cents, or 58.3 percent, versus the 52-week high of $3.05 reached last Dec. 12.
Standard & Poor’s lowered its credit rating for Finlay to “selective default” on Wednesday.
For the nine months, the loss was $44.1 million, or $4.75 a share, from $23.5 million, or $2.58, a year ago. Sales rose 22.8 percent to $556 million from $452.8 million.
Yesterday, the Parisian fashion house @azzaro_official cut the ribbon on a temeporary retrospective at the wing of the Musée des Arts Décoratifs in Paris. The exhibition, which shows the lasting influence of the brand’s founder Loris Azzaro, is titled “Azzaro, Fifty Sparkling Years” and presents 50 looks. In it’s ’70s heyday, fans of the brand included Jane Birkin, pictured here, Raquel Welch, Brigitte Bardot and more. See more photos on WWD.com #wwdfashion
@trinaturk and @macys Inc International Concepts line are linking up on a collection for summer — filled with accessories, swimwear and shoes. The collection will also include a Mr Turk men’s line, both of which are the designer’s first entry into a more accessibly priced area. “It’s very world-traveler, gypset-inspired,” said Turk. The Trina Turk x INC line will launch on May 15th. #wwdfashion
Assouline is paying homage to the late Azzedine Alaïa with a reprint of "Alaïa Livre de Collection.” The book is comprised of photographs of the designer's summer 1992 runway show with models Christy Turlington Burns, Naomi Campbell and Tyra Banks, pictured here at right. #wwdfashion #alaia #tyrabanks
Fall 2018 accessories take on a painterly hue, with Nebulas Blue among Pantone’s top 10 colors of the season. (📸: @jonghyupstudio ; editor: @twallz21 ; stylist and set designer: @haideefindlaylevin ) #wwdaccessories
@americanapparelusa is relaunching the brand outside of the U.S. today, opening its online store to more than 200 countries. The company is also contemplating a return to brick-and-mortar, though details have not been confirmed. In tandem with the expanded distribution is a recasting of a social media ad campagn, called “Back to Basics,” pictured here, with a focus on diversity and a cast of models above the age of 21. Read more on WWD.com #wwdnews #wwdfashion
Exclusive: @britneyspears is continuing to expand her brand. The pop icon, who appears in @kenzo ’s latest campaign, is partnering with Epic Rights to launch a line of branded merchandise. Read @hernameislex ‘s story, link in bio. #wwdnews #britneyspears
The Duchess of Cambridge channeled Princess Diana’s look upon giving birth to Prince Harry, when she and the Duke of Cambridge departed the hospital with the new baby Prince this afternoon in London. #wwdeye #princeofcambridge
The new Prince of Cambridge has arrived! The Duke and Duchess of Cambridge posed with the 8-pound newborn. She wore a look from one of her go-to designers, @jennypackham. Tap link in bio for more. #wwdeye #princeofcambridge