Claire's sees weaker sales in second quarter

By

Monica Karski

Published
Sep 2, 2015

Claire’s Stores, Inc., one of the world’s leading specialty retailers of fashionable jewelry and accessories for young women, teens, tweens, and kids, on Tuesday reported its financial results for the fiscal 2015 second quarter, ended August 1, 2015, down from a year before.

Thus, the company reported net sales of $347.6 million, a decrease of $30.2 million, or 8.0% compared to the fiscal 2014 second quarter. The decrease was attributable to an unfavorable foreign currency translation effect of its non-U.S. net sales, the effect of store closures and a decrease in same store sales, partially offset by new store sales and increased shipments to franchisees.

Consolidated same store sales decreased 1.7%, with North America same store sales increasing 0.7% and Europe same store sales decreasing 5.2%. The company computes same store sales on a local currency basis, which eliminates any impact from changes in foreign currency exchange rates.

Gross profit percentage decreased 130 basis points to 48.5% during the fiscal 2015 second quarter versus 49.8% for the prior year quarter.

Adjusted EBITDA in the fiscal 2015 second quarter was $59.9 million compared to $64.5 million last year. Adjusted EBITDA would have been $64.9 million excluding the foreign currency exchange rate changes in the second quarter of 2015.

As of August 1, 2015, Claire’s Stores, Inc. operated 2,954 stores in 17 countries throughout North America and Europe, excluding 327 concession locations. The Company also franchised 457 stores in 30 countries primarily located in the Middle East, Central and Southeast Asia and Central and South America.