Whitehall Q3 Losses Rise $34.6 Million, 77 Stores to Close

U.S. retailer Whitehall Jewellers reported total third quarter sales of $58.9 million compared to $63.3 million for the same period last year. Net loss rose from $8.3 million a year ago to $42.9 million.

Sales for the nine month period ended October 31 were $198.3 compared to $208.7 million last year. Net loss was $71.9 million versus a net loss of $15.2 million for the same period a year ago.

Despite the losses, CEO Robert L. Baumgardner is looking to the upcoming holiday season. "The company is focused on the Christmas selling season. Thanks to the support of our investors, banks and in particular the vendor community, the company has received the assortments necessary to compete during the holiday season."

Baumgardner continued, "With the trimming of our store base and underproductive inventory, we will be positioned to focus on improving the productivity in our remaining stores."

Whitehall plans to close 77 unprofitable stores and to liquidate approximately $44 million of primarily unproductive inventory in those stores, which are expected to close by February 2006.