Finlay Fourth Quarter and Annual Sales Rise Despite Closures
March 14, 07
Finlay Enterprises, the largest operator of licensed fine jewelry departments in department stores throughout the U.S., reported fourth quarter sales of $318.8 million, rising 5.3 percent compared to the fourth quarter of 2005. Annual sales increased 7.3 percent to $761.8 million.
The figures exclude the results of all doors that closed in the first half of fiscal 2006 because of the Federated and May merger, as well as the Belk doors that closed in the fourth quarter.
Specialty jewelry stores Carlyle and Congress reported sales of $51.6 million in the current quarter versus $39.6 million in the same period last year.
Income from operations before depreciation and amortization expenses (EBITDA) for the fourth quarter totaled $32 million, down from $38.4 million in the same period in 2005.
For the fiscal year, total sales from continuing operations increased 7.3 percent to $761.8 million. Specialty jewelry stores contributed sales of $108.2 million as Carlyle was acquired in May 2005 and Congress in November 2006.
The rise in sales allowed Finlay to decrease its losses to $6.4 million from $72.8 million in fiscal 2005.
Finlay’s fiscal calendar included 14 weeks during the quarter and 53 weeks for the year. The corresponding periods of fiscal 2005 were made up of 13 and 52 weeks.
“As we have discussed throughout the year, we consider 2006 and 2007 to be a transitional period for our company, as we absorb the impact of store closures and expand our presence in the specialty jewelry store sector,” said Finlay CEO Arthur E. Reiner
“We have taken important steps to diversify our revenue streams which have been bolstered by the solid performances at Carlyle and the newly acquired Congress Jewelers, as well as our positive results in the luxury sector, including Bloomingdale's,” he added.
Sales for the first quarter are projected to be in the range of $165 to $175 million, based on a comparable store sales increase of 6-8 percent. The first quarter is positively impacted by the shift in Mother's Day, which will harm the second quarter.