Whitehall Jewelers Sees Same-Store Sales And Profits Decrease - June.2008

Whitehall Jewelers Holdings, Inc., reported that net sales were $85.3 million for the fiscal 2007 fourth quarter ended Feb. 2, compared with $102.3 million for the fourth quarter of fiscal 2006. Of the sales decrease, $600,000 was attributable to store closings and stores closed for remodeling for limited periods.

Same-store sales decreased 13.8 percent for the period, year-over-year, due to worsening economic conditions and less consumer spending on discretionary jewelry items, said the Chicago-based national specialty retailer of fine jewelry.

Gross profit for the fiscal 2007 fourth quarter was $29.4 million, or 34.5 percent of net sales, compared with $36.8 million, or 36 period of net sales, in the same period a year ago, the company said. The decrease in gross profit was primarily due to lower net sales partially offset by higher margins. The decrease in gross profit as a percent of sales is attributed to the de-leveraging effect of the sales decline on occupancy costs partially offset by an increase in net merchandise margins.

For the fiscal 2007 fourth quarter, the net loss was $24.6 million, including $23 million of non-cash impairment charges, the company said. v