Finlay Q2 Loss Grows Despite Strong Sales

Finlay second quarter sales increased 28.8 percent to $190.6 million. However, the strong revenue stream did not prevent a growing loss of $12.3 million, compared to a loss of $8.5 million in the second quarter of 2007.

The retailer’s specialty jewelry stores Carlyle, Congress and Bailey Banks & Biddle contributed sales of $74.9 million, the company reported Wednesday. Comparable store sales for the quarter decreased 4.8 percent.

Loss before depreciation and amortization expenses totaled $7.1 million, compared to a loss of $1.9 million in the prior year period. 

“The second quarter was impacted by ongoing weakness in consumer confidence as well as a challenging retail environment,” CEO Arthur E. Reiner noted. “It is largely for these reasons that we continue to maintain strong discipline in managing our operating expenses and inventory levels in order to maximize our liquidity position.”

According to Reiner, the company will continue to focus on brand building within the Bailey Banks & Biddle and Carlyle businesses, as it transitions from a 100 percent leased business to a diversified business with a focus on expanding the specialty store division.