CLE Claires Stores

PEMBROKE PINES, Fla., Aug. 31 /PRNewswire-FirstCall/ -- Claire's Stores, Inc. (NYSE:CLE) today reported that for the four weeks ended August 26, 2006 comparable store sales rose one percent compared to last August, when comparable store sales rose ten percent. Total sales during the four-week period ended August 26, 2006 increased five percent to $116,774,000 compared with $110,728,000 for the comparable four-week period last year. Comparable store sales results for August 2006 compared to August 2005 were as follows: -- Claire's North America: positive low single digits -- Claire's International: negative low single digits -- Icing by Claire's: negative low single digits Please note that our comparable store sales numbers are calculated in local currencies. Total sales numbers give effect to the impact of foreign exchange. For the first seven months of Fiscal 2007, sales increased five percent to $777,755,000 compared to sales of $738,478,000 for the comparable period last year. Year to date, comparable store sales increased two percent compared with an increase of six percent during the first seven months of Fiscal 2006. Bonnie Schaefer, Co-Chairman and Co-CEO stated that, "In general, the performance of our International division has been relatively consistent over the past few months. However, results within this division vary significantly by country, with France continuing to present the greatest challenge. We remain focused on various issues identified some time ago, particularly in the areas of planning and allocation, and are working to implement improved processes as quickly as possible. As noted last month, we remain confident that the end result will be a stronger International division." Marla Schaefer, Co-Chairman and Co-CEO noted that, "During August, our Claire's North American stores continued to outperform our Icing by Claire's stores. Claire's performed essentially in line with expectations; results at Icing by Claire's were below our internal plans. Last year's Bohemian driven sales presented us with challenging comparisons this year, particularly at Icing by Claire's, which is a more fashion driven concept. At the same time, we believe that our Icing by Claire's jewelry and accessory offerings work well with this season's apparel and address the full spectrum of current jewelry and accessory trends." CLAIRE'S STORES, INC. (Monthly Sales in 000's) TOTAL COMP. STORE REPORTING PERIOD FY 2007 FY 2006 CHANGE CHANGE February $90,939 $88,139 3% 4% March $116,666 $119,692 -3% -3% April $104,251 $94,877 10% 9% May $102,562 $94,593 8% 4% June $132,514 $124,336 7% 2% July $114,049 $106,113 7% 2% August $116,774 $110,728 5% 1% Year-to-Date $777,755 $738,478 5% 2% Company Overview Claire's Stores, Inc. is a leading international specialty retailer offering value-priced costume jewelry and accessories to fashion-aware tweens, teens and young adult females through its two store concepts: Claire's and Icing by Claire's. While the latter operates only in North America, Claire's operates internationally. As of August 26, 2006, Claire's Stores, Inc. operated approximately 2,945 stores in the United States, Canada, Puerto Rico, the Virgin Islands, the United Kingdom, Ireland, France, Switzerland, Austria, Germany, Spain, Portugal, Holland and Belgium. Claire's Stores, Inc. operates through its subsidiary, Claire's Nippon, Co., Ltd., approximately 190 stores in Japan as a 50:50 joint venture with AEON, Co., Ltd. (fka JUSCO, Co. Ltd.), a $40 billion specialty retailer headquartered in Japan. The Company also licenses approximately 105 stores in the Middle East and Turkey under a licensing and merchandising agreement with Al Shaya Co., Ltd. and seven stores in South Africa under similar agreements with The House of Busby Limited. Forward-looking Statements This press release contains "forward-looking statements" which represent the Company's expectations or beliefs with respect to future events. Statements that are not historical are considered forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated. Those factors include, without limitation: changes in consumer preferences and consumer spending for pre-teen, teen and young adult apparel and accessories; competition; general economic conditions such as inflation and increased energy costs; general and political social conditions such as war, political unrest and terrorism; natural disasters or severe weather events; currency fluctuations and exchange rate adjustments; changes in laws; uncertainties generally associated with the specialty retailing business; disruptions in our supply of inventory; inability to increase comparable store sales at recent historical rates; inability to design and implement new information systems; delays in anticipated store openings or renovations; and uncertainty that definitive financial results may differ from preliminary financial results due to, among other things, final GAAP adjustments. These and other applicable risks, cautionary statements and factors that could cause actual results to differ from the Company's forward-looking statements are included in the Company's filings with the SEC, specifically as described in the Company's annual report on Form 10-K for the fiscal year ended January 28, 2006. The Company undertakes no obligation to update or revise any forward- looking statements to reflect subsequent events or circumstances. The historical results contained in this press release are not necessarily indicative of the future performance of the Company. Additional Information: Note: Other Claire's Stores, Inc. press releases, a corporate profile and most recent 10-K and 10-Q reports are available via Claire's corporate website: http://www.clairestores.com/. For information about our products and stores, please go to http://www.claires.com/. DATASOURCE: Claire's Stores, Inc. CONTACT: Marisa F. Jacobs, Esq., Vice President of Corporate Communications and Investor Relations, +1-212-594-3127, Fax, +1-212-244-4237, Web site: http://www.clairestores.com/ http://www.claires.com/ Company News On-Call: http://www.prnewswire.com/comp/174913.html

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