Claires Stores 8-K Regulation FD Disclosure

EXHIBIT 99.1

CLAIRE’S STORES, INC. AND SUBSIDIARIES

(EXCLUDING UNRESTRICTED SUBSIDIARIES)

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

(in thousands)

	January 28, 2017
ASSETS
Current assets:
Cash and cash equivalents	$	55,792
Inventories		130,239
Prepaid expenses		14,642
Other current assets		25,270
Total current assets		225,943
Property and equipment:
Furniture, fixtures and equipment		218,804
Leasehold improvements		297,636
		516,440
Accumulated depreciation and amortization		(381,975	)
		134,465
Leased property under capital lease:
Land and building		18,055
Accumulated depreciation and amortization		(6,313	)
		11,742
Goodwill		1,132,575
Intangible assets, net of accumulated amortization		305,422
Other assets		40,525
		1,478,522
Total assets	$	1,850,672
LIABILITIES AND STOCKHOLDER’S DEFICIT
Current liabilities:
Current portion of long-term debt, net	$	18,405
Trade accounts payable		69,731
Income taxes payable		6,083
Accrued interest payable		53,266
Accrued expenses and other current liabilities		87,146
Total current liabilities		234,631
Intercompany payables		84,402
Long-term debt, net		1,969,351
Revolving credit facility, net		3,925
Obligation under capital lease		16,388
Deferred tax liability		99,255
Deferred rent expense		34,300
Unfavorable lease obligations and other long-term liabilities		10,376
		2,217,997
Commitments and contingencies
Stockholder’s deficit:
Common stock		—
Additional paid-in capital		545,862
Accumulated other comprehensive loss, net of tax		(51,881	)
Accumulated deficit		(1,095,937	)
		(601,956	)
Total liabilities and stockholder’s deficit	$	1,850,672

CLAIRE’S STORES, INC. AND SUBSIDIARIES

(EXCLUDING UNRESTRICTED SUBSIDIARIES)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT

OF OPERATIONS

(in thousands)

	Fiscal Year
	Ended
	January 28, 2017
Net sales	$	1,311,316
Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below)		682,828
Gross profit		628,488
Other expenses:
Selling, general and administrative		458,184
Depreciation and amortization		55,508
Impairment of assets		181,618
Severance and transaction-related costs		2,531
Other income, net		(5,635	)
		692,206
Operating loss		(63,718	)
Gain on early debt extinguishment		315,653
Interest expense, net		200,187
Income before income tax benefit		51,748
Income tax benefit		(2,151	)
Net income	$	53,899

CLAIRE’S STORES, INC. AND SUBSIDIARIES

(EXCLUDING UNRESTRICTED SUBSIDIARIES)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(in thousands)

	Fiscal Year
	Ended
	January 28, 2017
Cash flows from operating activities:
Net income	$	53,899
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		55,508
Impairment of assets		181,618
Amortization of lease rights and other assets		2,970
Amortization of debt issuance costs		8,066
Accretion of debt premium		(2,735	)
Non-cash in kind interest expense		9,156
Net unfavorable accretion of lease obligations		(254	)
Loss on sale/retirement of property and equipment, net		665
Gain on early debt extinguishment		(315,653	)
Gain on sale of intangible assets/lease rights		(303	)
Stock-based compensation benefit		115
(Increase) decrease in:
Inventories		19,457
Prepaid expenses		(1,050	)
Other assets		331
Increase (decrease) in:
Trade accounts payable		(3,212	)
Income taxes payable		(537	)
Accrued interest payable		5,356
Accrued expenses and other liabilities		385
Deferred income taxes		(4,316	)
Deferred rent expense		(1,546	)
Net cash provided by operating activities		7,920
Cash flows from investing activities:
Acquisition of property and equipment		(16,268	)
Acquisition of intangible assets/lease rights		(109	)
Proceeds from sale of intangible assets/lease rights		303
Net cash used in investing activities		(16,074	)
Cash flows from financing activities:
Proceeds from revolving credit facilities		162,278
Payments on revolving credit facilities		(158,278	)
Proceeds from term note		50,000
Repurchase of note		(6,987	)
Payment of debt issuance costs		(14,977	)
Principal payments of capital lease		(242	)
Capital contribution from Parent		11,550
Net cash provided by financing activities		43,344
Effect of foreign currency exchange rate changes on cash and cash equivalents		1,731
Net increase in cash and cash equivalents		36,921
Cash and cash equivalents, at beginning of period		18,871
Cash and cash equivalents, at end of period	$	55,792

Claire’s (Gibraltar) Holdings Limited

Unaudited Condensed Consolidated Balance Sheet

(in thousands)

	January 28, 2017
ASSETS
Current assets:
Cash and cash equivalents	$	49,074
Inventories		50,700
Prepaid expenses		12,615
Other current assets		10,523
Total current assets		122,912
Property and equipment:
Furniture, fixtures and equipment		66,263
Leasehold improvements		98,010
		164,273
Accumulated depreciation and amortization		(116,993	)
		47,280
Intercompany receivables		114,478
Goodwill		145,058
Intangible assets, net		201,678
Other assets		34,153
		495,367
Total assets	$	665,559
LIABILITIES AND STOCKHOLDER’S EQUITY
Current liabilities:
Trade accounts payable	$	46,739
Income taxes payable		4,923
Accrued interest payable		599
Accrued expenses and other current liabilities		35,713
Total current liabilities		87,974
Long-term debt, net		157,143
Deferred tax liability		5,701
Deferred rent expense		9,133
		171,977
Stockholder’s equity:
Common stock		2
Additional paid in capital		770,859
Accumulated other comprehensive loss, net of tax		(52,384	)
Accumulated deficit		(312,869	)
		405,608
Total liabilities and stockholder’s equity	$	665,559

Claire’s (Gibraltar) Holdings Limited

Unaudited Condensed Consolidated Statement of Operations and Comprehensive Loss

(in thousands)

	Fiscal Year
	Ended
	January 28, 2017
Net sales	$	476,337
Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below)		249,982
Gross profit		226,355
Other expenses:
Selling, general and administrative		182,459
Depreciation and amortization		20,721
Impairment of assets		177,618
Severance and transaction-related costs		963
Other income		(5,315	)
		376,446
Operating loss		(150,091	)
Loss on early debt extinguishment		1,001
Interest expense, net		2,857
Loss before income taxes		(153,949	)
Income tax benefit		(838	)
Net loss		(153,111	)
Foreign currency translation adjustments		(941	)
Net loss on intra-entity foreign currency transactions, net of tax		(3,929	)
Other comprehensive loss		(4,870	)
Comprehensive loss	$	(157,981	)

CLSIP Holdings LLC

Unaudited Condensed Statement of Cash Flows

(in thousands)

	Fiscal Year
	Ended
	January 28, 2017
Net cash provided by operating activities	$	—
Net cash provided by investing activities		—
Net cash provided by financing activities		—
Net increase in cash and cash equivalents		—
Cash and cash equivalents, at beginning of period		—
Cash and cash equivalents, at end of period	$	—

CLSIP LLC

Unaudited Condensed Statement of Cash Flows

(in thousands)

	Fiscal Year
	Ended
	January 28, 2017
Net cash provided by operating activities	$	—
Net cash provided by investing activities		—
Net cash provided by financing activities		—
Net increase in cash and cash equivalents		—
Cash and cash equivalents, at beginning of period		—
Cash and cash equivalents, at end of period	$	—