Finlay Q1 Comparable Store Sales Down 4.5%

Fine jeweler Finlay Enterprises reported a loss from continuing operations of $11 million, or $1.19 per share, for the first quarter ended May 3. Sales increased 25.9 percent to $205.1 million, compared to $162.9 million in the previous year period.

The company’s specialty jewelry stores – Carlyle, Congress and Bailey Banks & Biddle – contributed sales of $77.7 million, up from $27.2 million the year before; however, comparable store sales (stores open for the same months during the comparable period) decreased 4.5 percent for the quarter.

Finlay’s loss from operations before depreciation and amortization expenses (EBIDTA) totaled $3.9 million, compared to a loss of $1.4 million in the prior year period.

Finlay Chairman and CEO Arthur E. Reiner commented, "Our business was impacted by ongoing macroeconomic challenges and weak consumer confidence during the first quarter of 2008. Although the sales for our Bailey Banks & Biddle business in the first quarter were lower than planned, our May sales trend has reinforced our belief that the initiatives we are in the process of implementing will translate into improved results.

“In light of the current difficult environment, we have continued to conservatively manage our business and have taken a disciplined approach to controlling our expenditures."

In terms of a fiscal year 2008 outlook, the company said that it continues to anticipate annual sales of approximately $1 billion and comparable store sales growth of approximately flat to positive 1 percent. A net loss per share in the range of $1.40 to $1.60 is expected.