Whitehall Fiscal Q3 Net Loss Decreases 23% to $16.4 Mln

Fine jewelry retailer Whitehall Jewelers reported fiscal third quarter net sales of $44.5 million, from $48.8 million, an 8.81 percent drop. However, its net loss decreased 23 percent to $16.4 million for the period ended November 3.

The narrowed net loss was primarily a product of lower expenses, including professional fees and lower interest expense, the company said.

Of the sales decrease, $1.7 million was attributable to store closings and stores closed for remodeling. Comparable store sales decreased to $3.3 million, or 7 percent during the quarter,

Gross profit totaled $9.1 million, a drop of 23.53 percent over the $11.9 million from 2006. The decrease is attributed to lower sales, higher inventory shrink expense and higher repairs expense and costs associated with its jewelry service plan.

The jewelry company also reported a nine-month total net loss of $49.5 million, versus $46.8 in the first nine months of fiscal 2006. Year-to-date net sales decreased $6.3 million, or 3.8 percent, to $157.6 million over $163.9 million in the same period of 2006. Comparable store sales decreased 3.7 percent year-over-year.

Due to its financial plight, Whitehall needs to actively seek additional financing, as its borrowing capacity may not be adequate to meet its working capital and capital expenditure needs through the remainder of the year.