Claire’s sales up 2% in 2017
Just a few weeks after filing for Chapter 11 bankruptcy protection, Claire’s Stores Inc reported on Tuesday its preliminary unaudited financial results, which included net sales of $1.3 billion, up 2 percent, for the full year ended February 3, 2018.
Consolidated same store sales increased 1.7 percent in fiscal 2017, with North America same store sales increasing 1.5 percent and Europe same store sales increasing 1.9 percent.
Meanwhile, the specialty retailer of fashionable jewelry and accessories reported net income of $35.2 million. Adjusted EBITDA fiscal 2017 was $218.4 million, compared to $188.2 million in fiscal 2016 which consisted of 52 weeks.
In its fourth quarter, net sales were equally up. The company reported net sales of $406.8 million, an increase of $24.3 million, or 6.4 percent compared to the same quarter in fiscal 2016.
Consolidated same store sales decreased 0.8 percent however, with North America same store sales increasing 1.1 percent and Europe same store sales decreasing 3.8 percent.
The struggling retailer filed for Chapter 11 bankruptcy protection on March 19, 2018, in an effort to reduce its debt by about $1.9 billion, as the retailer continues to combat a fall in mall traffic.
"We are pleased the restructuring process is proceeding as planned with relatively little impact to customers," said Ron Marshall, Claire's Chief Executive Officer, in a news statement.
"Our underlying business is sound and the steps we are taking will substantially reduce the debt on our balance sheet to help ensure Claire's long term success. We look forward to emerging as a healthier, more profitable company – one that can nimbly adjust to the changing dynamics of the retail landscape and will be a strong business partner for suppliers, concessions partners and franchisees."
Claire’s expects to complete the Chapter 11 process in September.
The company has been focused on store closures in recent years.
As of February 3, 2018, Claire's operated 2,594 stores (compared to some 2,660 stores in Q2) in 17 countries throughout North America and Europe, excluding 970 concession store locations. The company operates through its stores under two brand names: Claire's and Icing.
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