Finlay Enterprises posted a loss of $107.3 million for 2008, and forecast an operating loss in 2009 as well.
The net loss of $107.3 million for the 2008 period is far greater than its net loss of $10.0 million for 2007
The company did say total sales rose 5.2% in 2008, to $754.3 million, compared to $717.4 million in 2007. However, comparable store sales decreased 11% — the result, the company said, of “decreased consumer spending in a weak economic environment.”
Gross margin decreased by $29.9 million compared to 2007, and, as a percentage of sales, gross margin decreased by 6.2% from 45.2% to 39.0%.
The company noted that it was “in default of certain covenants under the revolving credit agreement. These uncertainties raise substantial doubt about our ability to continue as a going concern.”
In February, the company announced plans to exit the licensed department store based business and close approximately half of its specialty jewelry stores in 2009.
The company has a total of 674 locations, including 566 department store based fine jewelry departments, as well as 108 stand-alone jewelry stores: 69 Bailey Banks & Biddle stores, 34 Carlyle stores, and five Congress Jewelers stores.
For more highlights from Finlay’s recent filing, go here.
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