Whitehall Jewelers Holdings Inc, a leading national specialty retailer of fine jewelry, reported financial results for the fiscal third quarter and nine months ended November 3, 2007.
For the fiscal 2007 third quarter, net loss decreased 23% to $16.4 million, or $0.41 per share, from $21.8 million, or $0.86 per share, in the third quarter of 2006. The narrowed net loss was primarily attributable to lower selling, general and administrative expenses, including professional fees and lower interest expense, as well as initial improvements in operating efficiencies implemented by a new management team.
Net sales were $44.5 million compared with $48.8 million for the third quarter of fiscal 2006 on one less day in the quarter versus the prior year period. Of the sales decrease, $1.7 million was attributable to store closings and stores closed for remodeling for limited periods.
Comparable store sales decreased $3.3 million, or 7.0%, for the third fiscal quarter, primarily due to a lower average selling price resulting from a shift in product mix with higher percentage sales of gold and precious and semi-precious items, which carry lower price points and higher margin. The decrease in average selling price was partially offset by a 2.1% increase in the total number of merchandise units sold.
Gross profit for the fiscal 2007 third quarter was $9.1 million compared with $11.9 million in the same period a year ago. The Company's gross profit margin was 20.4% in the fiscal third quarter compared with 24.4% in the third quarter of the prior year. The decrease in gross profit was primarily due to lower sales, higher inventory shrink expense and higher repairs expense and costs associated with its jewelry service plan.
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