Reuters
Jun 12, 2009
Claire's Stores posts narrower quarterly loss
Reuters
Jun 12, 2009
NEW YORK, June 11 (Reuters) - Fashion accessory and jewelry retailer Claire's Stores Inc posted a narrower first-quarter loss on a 10 percent revenue decline on Thursday 11 June, and warned that sales are getting worse in the second quarter.
Claire's |
Claire's, which sells cheap jewelry for young girls and women in the United States and Europe and is owned by private equity company Apollo Management LP [APOLO.UL], reported a net loss of $29 million, down from $35.6 million in the same quarter last year.
Revenue fell 10.4 percent to $293.1 million and consolidated same-store sales fell 2.3 percent in the first quarter. The decline was worse in North America, where same-store sales fell 2.9 percent. In Europe, they fell 0.9 percent.
First-quarter sales were better compared with other retailers, but the recession has pushed same store sales declines into the high single digits, Chief Executive Officer Gene Kahn said in a statement.
Cash and cash equivalents were $206.7 million as of May 2.
The company, based in Pembroke Pines, Florida, said it had drawn down its revolving credit facility during the 2008 third quarter because Lehman Brothers, a member of the facility's syndicate, filed for bankruptcy.
The company said it has not yet found a replacement for Lehman and is assessing whether to pay all of or part of the outstanding balance on the facility. (Reporting by Robert MacMillan, editing by Leslie Gevirtz)
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