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Claire's Stores Earnings Rise

TSC and IRIS Staff

Claire's Stores (CLE Quote), a retail chain specializing in women's accessories, said its fourth-quarter earnings topped expectations and revenue rose nearly 5%.

The company earned $69.1 million, or 69 cents a share, in the quarter, compared with $55.5 million, or 56 cents a share, a year ago.

Excluding a charge related to incremental taxes, earnings from continuing operations were 75 cents a share. Analysts polled by Thomson First Call were estimating earnings of 68 cents a share.

Fourth-quarter revenue rose to $414.7 million, just ahead of Wall Street's consensus $413.9 million estimate. Same-store sales for the fourth quarter increased 6%.

The company said interest in jewelry remains high, and it's also seeing growth in newer categories such as licensed fragrances and cosmetics.

Claire's expects to earn 30 cents to 32 cents a share in the first quarter on revenue of $314 million to $318 million. Analysts were forecasting earnings of 33 cents a share on revenue of $321.5 million.

For fiscal 2007, the company expects to earn $1.96 to $2.01 a share on revenue of $1.45 billion to $1.47 billion. Analysts expect the company to earn $1.89 a share on revenue of $1.47 billion.

"Fiscal 2006 was a time of growth in Claire's international division. Beyond increasing our store count, we began conducting business in three new countries, namely Spain, Holland and Belgium," the company said. "This expansion into new markets will continue during fiscal 2007 when we expect to enter at least one new country, while continuing to open new stores in countries where we already have a presence."

Claire's stock was at $32.72, up $2.52, or 8.3%.