STERN’S END TO IMPACT FINLAY NET
NEW YORK — Finlay Enterprises warned last week that the closure of Federated Department Stores’ Stern’s division will trim about $22 million, or 20 cents a share, off its earnings in the coming fiscal year.
The firm, which is currently in the fourth quarter of fiscal 2000, said earnings per diluted share will be in the range of $2.65 to $2.70 for fiscal 2001. Wall Street was looking for earnings per share of $2.78 from the operator of leased jewelry departments.
Finlay, based here, stood by its previous earnings guidance for fiscal 2000 of $2.48 to $2.56 per diluted share. Wall Street’s consensus of $2.49 is at the lower end of that range.
Arthur Reiner, chairman and chief executive, said in a statement, “While we are disappointed with Federated’s announcement, we will actively pursue all appropriate growth initiatives, while continuing to focus on improving our existing business.”
One-time charges related to fixed asset disposal and severance are expected to amount to approximately $900,000, or 5 cents a share.
Shares of Finlay closed down 48 cents to $12.58 Friday in Nasdaq trading.