ST. LOUIS, Jan. 14, 2011 /PRNewswire/ -- CPI Corp.
(NYSE: CPY) today announced fourth quarter-to-date sales
comparisons for the first eight weeks of its Fiscal 2010 fourth
quarter ending February 5, 2011,
including holiday season results. Total sales on a
point-of-sale (POS) basis for this period declined 5% to
$101.1 million from $106.8 million in the prior-year comparable
period.
Same-store sales for the eight week period, on a point of sale
basis excluding foreign currency translation and the positive
impact of the Kiddie Kandids operations, declined 12% compared with
the prior year. Same-store sales for the Company's PictureMe
Portrait Studio® brand decreased by 8% with a sittings decline of
13%, while same-store sales and sittings at Sears Portrait Studios
declined by 16% and 14%, respectively.
"Although we're disappointed with our holiday season results,
we've enjoyed significantly better trends in the last three weeks
of the period across all our brands and are managing costs well,"
said Renato Cataldo, President and
Chief Executive Officer. "While the difficult holiday will
pressure full-year results, our cash flows remain strong, and we
are encouraged heading into 2011."
The Company's disclosure of 2010 holiday sales continues a
practice commenced following the 2004 holiday season in recognition
of the importance of holiday sales to the Company's annual
performance. Final results for the Company's fiscal year
2010 are anticipated to be reported in mid-April 2011.
As of January 12, 2011, the
Company has purchased nearly 300,000 shares under its repurchase
program.
About CPI Corp.
For more than 60 years, CPI Corp. (NYSE: CPY) has been dedicated
to helping customers conveniently create cherished photography
portrait keepsakes that capture a lifetime of memories.
Headquartered in St. Louis,
Missouri, CPI Corp. provides portrait photography services
at approximately 3,000 locations in North
America, principally in Sears, Walmart and Babies "R" Us
stores. CPI's conversion to a fully digital format allows its
studios to offer unique posing options, creative photography
selections, a wide variety of sizes and an unparalleled assortment
of enhancements to customize each portrait – all for an affordable
price.
Forward-Looking Statements
The statements contained in this press release that are not
historical facts are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, and
involve risks and uncertainties. The Company identifies
forward-looking statements by using words such as "preliminary,"
"plan," "expect," "looking ahead," "anticipate," "estimate,"
"believe," "should," "intend" and other similar expressions.
Management wishes to caution the reader that these
forward-looking statements, such as the Company's outlook for
portrait studios, net income, future cash requirements, cost
savings, compliance with debt covenants, valuation allowances,
reserves for charges and impairments, capital expenditures and
other similar statements, are only predictions or expectations;
actual events or results may differ materially as a result of risks
facing the Company. Such risks include, but are not limited
to: the Company's dependence on Sears, Walmart and Toys "R" Us, the
approval of the Company's business practices and operations by
Sears, Walmart and Toys "R" Us, the termination, breach, limitation
or increase of the Company's expenses by Sears and Toys "R" Us
under the license agreements, or Walmart under the lease and
license agreements, customer demand for the Company's products and
services, the development and operation of the Kiddie Kandids
business, the economic recession and resulting decrease in consumer
spending, manufacturing interruptions, dependence on certain
suppliers, competition, dependence on key personnel, fluctuations
in operating results, a significant increase in piracy of the
Company's photographs, widespread equipment failure, compliance
with debt covenants, high level of indebtedness, implementation of
marketing and operating strategies, outcome of litigation and other
claims, impact of declines in global equity markets to pension plan
and impact of foreign currency translation. The risks
described above do not include events that the Company does not
currently anticipate or that it currently deems immaterial, which
may also affect its results of operations and financial condition.
The Company undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
SOURCE CPI Corp.