Finlay reports 1Q results

Finlay Enterprises, Inc., a leading retailer of fine jewelry operating luxury stand-alone specialty jewelry stores and licensed fine jewelry departments in department stores throughout the United States, announced its financial results for the first quarter of fiscal 2008. Results from the prior year period ended May 5, 2007 exclude from continuing operations the results from Parisian stores that closed in fiscal 2007, which have been classified as discontinued operations in accordance with generally accepted accounting principles (GAAP).

Sales for the first quarter increased 25.9% to $205.1 million compared to $162.9 million in the comparable period of 2007. Specialty jewelry stores consisting of Carlyle, Congress, and Bailey Banks & Biddle, which was acquired in November 2007, contributed sales of $77.7 million for the first quarter, as compared to $27.2 million for the same period last year. Comparable store sales (stores open for the same months during the comparable period) for the first quarter decreased 4.5%.

For the thirteen weeks ended May 3, 2008, the Company reported a loss from continuing operations of $11.0 million, or $1.19 per share, compared to a loss of $7.8 million, or $0.86 per share, in the thirteen week period ended May 5, 2007. Loss from operations before depreciation and amortization expenses (EBITDA) for the first quarter totaled $3.9 million, compared to a loss of $1.4 million in the prior year period. See Reconciliation of EBITDA in the attached tables.

Income from discontinued operations for the thirteen weeks ended May 5, 2007 totaled $0.1 million, or $0.02 per diluted share and net loss on a consolidated basis including discontinued operations totaled $7.6 million, or $0.84 per share.

Arthur E. Reiner, Chairman and Chief Executive Officer of Finlay Enterprises, Inc. said, our business was impacted by ongoing macro economic 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. Further, we are carefully monitoring our inventory levels so that we may maximize our cash flow. This resulted in higher than anticipated excess availability under our revolving credit facility in the first quarter.

Source : http://www.finlayenterprises.com/

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