Claire's Stores, Inc. Reports Fiscal 2013 Second Quarter Results
The Company reported net sales of $366.7 million for the fiscal 2013 second quarter, an increase of $7.1 million, or 2.0% compared to the fiscal 2012 second quarter. The increase was attributable to new store sales and a favorable foreign currency translation effect on the Company's non-U.S. net sales. This was partially offset by the effect of store closures and decreased shipments to franchisees. Net sales would have increased 1.3% excluding the impact from foreign currency exchange rate changes.
Consolidated same store sales decreased 0.1%, which included a 1.1% increase in North America and a 2.0% decrease in Europe. The Company computes same store sales on a local currency basis, which eliminates any impact from changes in foreign currency exchange rates.
Gross profit percentage increased 10 basis points to 50.6% during the fiscal 2013 second quarter versus the comparable prior year quarter. The improvement consisted of a 60 basis point increase in merchandise margin and a 10 basis point decrease in buying costs, partially offset by a 60 basis point increase in occupancy costs. The increase in occupancy costs, as a percentage of net sales, was primarily due to normal rent increases, which were not offset by an increase in same store sales.