Whitehall Jewellers H1 Sales Down –5.9%

Whitehall Jewellers sales for the second quarter totaled $72.7 million, compared to $76.2 million during the second quarter last year. Comparable store sales for the quarter decreased 7.2 percent compared to a 0.6 percent decrease in the second quarter of last year.

First half sales decreased 5.9 percent to $141.9 million versus $150.8 million last year, while comparable store sales decreased 7.9 percent compared to an increase of 2 percent.

Whitehall closed five under performing stores during the second quarter. The company expects to take a second quarter charge associated with these store closings of $0.02 per share. On the other hand, the retailer opened three new stores during the quarter and plans to open two additional stores in the next six months, binging the total of new stores opened during 2003 to 21.

In other news, the Company announced the completion of a new four-year $125 million revolving credit agreement with a group of banks. The Company expects to charge off $0.02 per share of deferred financing costs associated with its prior credit facility during the second fiscal quarter.