Home / Knowledge / News / Fashion / Claire's CEO pleased with Q1 performance
Claire's CEO pleased with Q1 performance
12
Jun '09
Claire's Stores Inc, a leading specialty retailer offering value-priced fashion accessories and jewelry for kids, tweens, teens, and young women ages 3 to 27, reported its financial results for the 2009 first quarter, which ended May 2, 2009.

First Quarter Results
The Company reported net sales of $293.1 million for the fiscal 2009 first quarter, a 10.4% decrease from the 2008 fiscal first quarter. The decrease was primarily attributable to the effect of foreign currency exchange rate changes and a decline in same store sales, partially offset by new store sales. Sales would have declined 2.4% excluding the impact from foreign currency rate changes.

Consolidated same store sales declined 2.3% in the 2009 fiscal first quarter. A decline in average transactions per store of 2.9% was partially offset by an increase in average transaction value. The increase in sales per transaction reflects our strategy to increase average ticket prices through “good, better, best” price tiering, while maintaining an attractive entry price point within our “good” tier.

The decline in the number of transactions reflects weaker traffic. In North America, same store sales decreased 2.9%, with sales at our Icing brand outperforming Claire's. European same store sales declined 0.9%. We compute same store sales on a local currency basis, which eliminates any impact from changes in foreign exchange rates.

Chief Executive Officer Gene Kahn commented, “We are pleased with our performance in the first quarter relative to other retailers and with the progress we made on our 2009 company priorities. However, our sales continue to be negatively impacted by the difficult global economic conditions.

In the first quarter, we continued to benefit from our Cost Savings Initiative that began in 2008. We achieved our expense savings objectives during the first quarter, reducing Selling, General and Administrative expenses by $11 million, net of foreign currency effect. These reductions in costs allowed us to increase our Adjusted EBITDA by $2 million, or 6%, compared to last year, despite experiencing a decline in sales. We believe we remain on track to achieve our 2009 cost savings objectives.

After Easter, our business began to soften and fell more in line with other retailers who recently reported their May sales. This trend has continued, as thus far in the second quarter our same store sales have been running in the negative high single digits. We remain committed to prioritizing, simplifying, and focusing our efforts to continue to improve our merchandise offense, to drive same store sales performance, and reduce costs which should allow us to maximize cash flow and help us achieve our operating objectives.”

Gross profit percentage increased 100 basis points during the fiscal 2009 first quarter to 48.4% compared to the fiscal 2008 first quarter of 47.4%. The increase included a 90 basis point improvement in merchandise margin and a 30 basis point decrease in buying cost, partially offset by a 20 basis point increase in occupancy cost. The improvement in merchandise margin was due to increased initial mark-up on purchases and reduced freight and shrink related costs.


Must ReadView All

'Requirement of polyester filament yarn is increasing'

Textiles | On 19th Jun 2018

'Requirement of polyester filament yarn is increasing'

The requirement of polyester filament yarn (PFY) is increasing as it...

Courtesy: SAC

Textiles | On 19th Jun 2018

SAC to release pilot of Higg Facility Social Labour Module

The Sustainable Apparel Coalition (SAC) will release this year a...

Courtesy: Tim Savage from Pexels

Textiles | On 19th Jun 2018

Da Lat begins construction of $50mn wool yarn factory

Da Lat Worsted Spinning Limited Company has begun construction of a...

Interviews View All

Top executives
Textile industry

Knowledge sharing platform needed for sustainable water management

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search