Finlay Reports Sales Gains in the Third Quarter

In a reversal of recent industry reports, jewelry retailer Finlay Enterprises Inc. reported a growth in third quarter sales. The company reported a 12.9 percent increase to $160.2 million compared to $141.9 million in the third quarter of 2007.

U.S. shoppers have not deserted jewelry retailers in the third quarter as Finlay's Q3 results show

Despite the apparent good news, comparable store sales decreased 13.5 percent. Finlay completed the acquisition of Bailey Banks & Biddle from Zale in November 2007, which could explain the year-over-year rise in sales and decrease in comparable store sales - stores that were open in the third quarter of the previous year.

Sales results are on a continuing operations basis, which excludes sales from Parisian stores. Specialty jewelry stores consisting of Carlyle, Congress and Bailey Banks & Biddle contributed sales of $58 million for the quarter, as compared to $23.6 million for the same period last year.

Sales in the first three quarters of the fiscal year increased 22.8 percent to $555.9 million.

Specialty jewelry stores contributed sales of $210.5 million for the nine month period compared to $77.9 million in 2007. Comparable store sales for the nine months, excluding the Macy's and Lord & Taylor stores, decreased 7 percent. Including these stores, comparable store sales decreased 7.9 percent.

Finlay is a U.S. retailer of fine jewelry operating luxury stand-alone specialty jewelry stores and licensed fine jewelry departments in department stores throughout the United States.