Whitehall Jewellers Q4 Sales Fall, but Profits Rise 23%

Perhaps troubled, but not altogether ailing, U.S. jewelry retailer Whitehall Jewellers fourth quarter profit was 5.3 million, jumping 23 percent compared to $4.3 million last year. But this did not save the annual results, closing another fiscal year of losses.

Annual loss depends to $9.9 million, or $0.71 per share, compared to a net loss of $8.7 million, or $0.62 per share, for fiscal 2003.

The company reported net sales of $125.6 million for the quarter, compared to $136.6 million in the fourth quarter of 2003. Comparable store sales fell 8.7 percent during the quarter, compared to a 6 percent increase during the same period last year.

Annual sales stood at $334.2 million, compared to $344.7 million last year as comparable store sales declined 3.7 percent during the year.

All this happens while fourth quarter professional fees and other charges decreased by approximately $17.2 million in comparison to the prior year. The decrease was primarily due to lower professional fees and settlement costs associated with the consolidated Capital Factors actions and the related U.S. Attorney and SEC investigations.

Whitehall has been battling financial and legal issues in the past couple of years leading to frequent top management changes. Two weeks ago, on the eve of announcing the latest financial results, CEO and President Hugh Patinkin died, delivering another blow to the company.

Daniel H. Levy, Chairman said, "While the days since Hugh Patinkin's passing have been trying on the Whitehall family, to Hugh's credit, the company has a deep management team, and the company is well-positioned to execute on its strategies. We are focused on the business at hand, but nevertheless, our thoughts continue to be with Hugh's family as we move forward."