After several quarters of lackluster financial performance,
The company lost
Sales at stores open at least a year, a key metric of retail health, fell 2.9 percent at its North American stores. Its European stores fared better, with same-store sales up 2.5 percent.
"North American markets are the most challenging from a traffic point of view," said CEO
Revenue rose 3 percent to
Lafon announced plans for "product innovation and channel extension" as well as efforts make Claire's, founded in 1961 and well known by many girls as the place for free ear piercing, "cool and front of mind."
The company plans to expand its relationship with Toys 'R' Us in
Claire's also plans to look at opportunities to sell its wares to other stores outside of malls, where traffic is waning. Most of Claire's stores are currently located in malls.
Claire's expects to close 130 to 140 underperformng stores in the current fiscal year and open 40 new stores.
Claire's said it is also investing in e-commerce, social media and special events and launching exclusive licensed products from such brands as Frozen and up-and-coming boy bands The Vamps and 5 Seconds of Summer. For the critical holiday shopping season, Lafon said Claire's will have the widest assortment of gifts in years.
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