Finlay Posts Q4 Comparable Store Sales Drop of 6.4%

Fine jewelry retailer Finlay Enterprises reported a fourth quarter comparable store sales decrease of 6.4 percent for the quarter ended February 2 and a decline of 1.4 percent in comparable store sales for the fiscal year.

Total sales increased 24 percent for the quarter to $383.1 million, compared to $309 million in 2006. Specialty stores consisting of Carlyle, Congress and Bailey Banks and Biddle contributed sales of $145.9 million for the fourth quarter, up from $51.6 million in 2006.

Income from continuing operations totaled $13.4 million, or $1.43 per diluted share, up from $12.2 million, or $1.31 per diluted share, in 2006. Income from operations before depreciation and amortization expenses (EBITDA) for the fourth quarter came to $38.4 million, compared to $30.1 million in 2006.

For the year, on a continuing operations basis, overall sales increased 13.1 percent to $835.9 million, while specialty jewelry stores contributed sales of $223.8 million in 2007, as compared to $108.2 million in 2006. Including discontinued stores, comparable store sales in 2007 decreased 1 percent.

Loss from continuing operations in 2007 totaled $10.3 million, or $1.13 per share. EBITDA for fiscal 20076 totaled $30.0 million.

It is important to note that overall sales results include figures from Bailey Banks & Biddle and Congress stores since their date of acquisition in November 2007 and November 2006, respectively. In addition, the figures exclude from continuing operations the results from discontinued Macy’s, Belk’s and Parisian stores closed in fiscal 2006 and 2007.

For fiscal 2008, Finlay says that it projects consolidated comparable store sales will be approximately flat to positive 1 percent for the year. In the licenses business, comparable store sales are expected to be in the range of negative .5 percent to positive 1 percent. For specialty stores, the company expects a comparable stores sales increase in the low-to-mid single digit range.

In 2008, Finlay plans to open 10 new doors and close 15 doors, not including the 94 Macy's North and Northwest departments and the 47 Lord & Taylor department, scheduled to close at the end of the fiscal year. Included in the openings are four Carlyle stores and two Bailey Banks & Biddle stores.