Whitehall Jewelers Posts Rise In Q4 Net Sales
March 23, 04
Whitehall Jewelers reported today net sales of $136.6 million for the fiscal fourth quarter compared to $128.4 million in the prior year quarter.
Net income for the fourth quarter was $5.9 million compared to net income of $14.5 million, last year.
Comparable store sales increased 6 percent in the fourth quarter compared to a 4 percent decrease for the same period last year.
For the fiscal year ended January 31, 2004, the Company reported total net sales of $344.7 million, compared to $341.0 million last year.
Net loss was $7.1 million versus net income of $9.7 million for fiscal 2002.
Comparable store sales decreased 0.6 percent for the fiscal year compared to a 1.9 percent decrease for the prior fiscal year.
Hugh M. Patinkin, Whitehall’s Chairman and CEO, commented, “We're pleased with the sales momentum we generated in the second half of 2003, including a solid Christmas season. Led by a strong Valentine's Day, Whitehall's February comparable store sales were up 10.4% compared to a decline of 4.6% last year”.
“In 2004, we will continue to focus on the sales initiatives which we successfully introduced last year. This year we are introducing programs which are designed to improve gross margin. Indeed, in January of this year we implemented several margin improvement initiatives.”
The Company closed four stores in the fourth quarter. During the fiscal year the Company opened 21 stores and closed a total of 11 stores.
Fourth quarter expenses were significantly higher than last year, primarily as a result of two items arising from the Capital Factors civil litigation: the SEC inquiry and the U.S. Attorney investigation.
Professional fees increased by approximately $8.6 million in the quarter over the prior year. In addition, the company accrued a reserve of $6 million in connection with the Capital Factors suit. These two items resulted in an increase in expenses totaling $14.6 million for the quarter.
The company says it is in the process of interviewing candidates for the newly created position of Chief Operating Officer and filling the position of Executive Vice President of Merchandise. Later this year, the company will commence a search for a General Counsel.