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.
Taking the final spot on the mens’ portion of New York Fashion Week calendar next month will be none other than @tomford. Though he’s shown his men’s wear in New York in the past, this will mark the first time the designer has shown his men’s collection alone during New York Fashion Week: Men’s. His runway show will debut on February 6 at the Park Avenue Armory. #wwdfashion
London-based couture house @ralphandrusso has certainly been in the spotlight, having its dresses worn by @beyonce, Angelina Jolie, Meghan Markle in her engagement photos and more. For couture, Tamara Ralph focused on ornamentation — think: feathers with chain mail, jet embroidery and clusters of pearls and crystals. See the rest of the collection on WWD.com #wwdfashion #couture (📷: @giovanni_giannoni_photo)
Minnie Mouse celebrated her 90th birthday by getting her own star on the Hollywood Walk of Fame. For her celebratory luncheon, @coach’s creative director @stuartvevers dressed her in a custom made prairie dress, complete with Vever’s take on the polka dot – black sequined versions – under a cropped motorcycle jacket. The designer also put his own mark on Minnie’s classic red shoes, infusing the color with sparkles and adding some Coach crystals. “We chose colors that were very Minnie and also represented quintessential Coach elements,” said Vevers. #wwdfashion #nationalpolkadotday (📷: George Chinsee)
@nickjonas is unveiling his first-ever apparel collection through a partnership with John Varvatos. The limited-edition capsule, which makes its debut in spring, also marks the first time the designer has collaborated with anyone on a line. “The process in working with Nick is amazing. It’s inspiring to be around someone who is not only connected with the trade that they do, but also with what’s happening in the environment around him, and how that connects to what we do with style,” said Varvatos. (RG: @johnvarvatos) #wwdfashion
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)