Finlay reports total retail sales up 11.4% to $166.4mn for Q1
28 May '07
4 min read
In the Company's fiscal 2007 outlook, it indicated the effective tax rate for the fiscal year would be significantly lower than that of fiscal 2006 primarily due to the projected low level of pre-tax loss.
The lower tax rate in fiscal 2007 will negatively impact the first three quarters of the year due to expected losses in those periods and benefit the fourth quarter, the period in which the majority of the Company's profit is generated. As such, the effective tax rate for the first quarter of 2007 was 29.5% compared to 39.5% for the first quarter of 2006.
Had fiscal 2006 been subject to the fiscal quarter 2007 tax rate, the resulting net loss from continuing operations for the first quarter of 2006 would have been $7.4 million, or $0.82 per share.
For the thirteen weeks ended April 29, 2006, the Company reported net income on a consolidated basis including discontinued operations of $119,000, or $0.01 per share.
Upon the closing of the Parisian store group at the end of the second quarter, the Parisian results will be reflected as discontinued operations for both the second quarter and six months for fiscal 2007 and 2006.
Arthur E. Reiner, Chairman and Chief Executive Officer of Finlay Enterprises Inc commented, "While we were pleased with our comparable store sales increase for the quarter, our overall results reflect lower volume than anticipated at doors open less than a year, including our Congress stores."
We continue to view this year as a transitional period for our Company, as we absorb the impact of store closures and expand our presence in the specialty jewelry store sector. We remain focused on our disciplined approach to managing our operating expenses and inventory levels.
"Further, the steps we have taken to diversify our revenue streams are generating results and we continue to be encouraged by the performance in the luxury sector, including our Carlyle stores and our Bloomingdale's departments."
For fiscal 2007, taking actual first quarter results into consideration, the Company projects a net loss per share on a continuing operations basis in the range of $0.30 to $0.45, EBITDA in the range of $35 million to $37 million and total sales to range from $770 million to $790 million, excluding the Parisian store group.
marketing@alchempro.com
