FINLAY SHRINKS SECOND-QUARTER LOSS
NEW YORK — Finlay Enterprises Inc., which operates both specialty stores and leased departments, narrowed its second-quarter loss to $1.4 million from $1.6 million a year ago.
Sales for the three months ended Aug. 2 increased 7.9 percent to $148.1 million from $137.2 million last year.
For the six months, Finlay lost $5.6 million compared with $5.9 million a year earlier. Sales rose 5.5 percent to $282.6 million from $267.9 million.
Last week, as reported, Finlay agreed to purchase the leased department business of Zale Corp.’s Park Fine Jewelers division for about $65 million.
Finlay plans to finance the purchase through an increase in its revolving credit facility to $225 million from $135 million. It is also planning a secondary offering of three million common shares.
Leases are being sold for 139 locations in Mercantile Stores, Parisian and Marshall Field units.
Sales of the departments being acquired totaled $100 million in the year ended July 31.