Exhibit 99.1
[WHITEHALL JEWELLERS, INC. LOGO] NEWS RELEASE
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For: Whitehall Jewellers, Inc.
Contact: John R. Desjardins
Executive Vice President
FOR IMMEDIATE RELEASE TX: 312.762.9751
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WHITEHALL JEWELLERS, INC. ANNOUNCES Q2 SALES OF $72.7 MILLION
Chicago, Illinois, August 7, 2003 - Whitehall Jewellers, Inc. (NYSE:
JWL) today announced sales for the second quarter ended July 31, 2003 of $72.7
million compared to $76.2 million for the second quarter last year. Comparable
store sales for the quarter decreased 7.2% compared to a 0.6% decrease in the
second quarter of last year.
For the six-month period ended July 31, 2003, sales decreased 5.9% to
$141.9 million versus $150.8 million for the six-month period ended July 31,
2002. Comparable store sales decreased 7.9% compared to an increase of 2.0% for
the six months ended July 31, 2002.
The Company announced the completion of a new four-year $125 million
Revolving Credit Agreement with a group of banks. As previously reported, the
Company expects to charge off $0.02 per share of deferred financing costs
associated with its prior credit facility during the second fiscal quarter.
In addition the Company announced that during the second quarter it
closed five under performing stores. The Company expects to take a second
quarter charge associated with these store closings of $0.02 per share. The
Company opened three new stores in the second quarter and plans to open two
additional stores during the balance of 2003. The Company will have opened 21
new stores during 2003.
The Company plans to release second quarter earnings on Thursday,
August 28, 2003. A conference call for 9:00 AM (EDT) is scheduled. Please call
Susan Weber at 312.762.0292 to reserve a space on the call. The conference call
will also be broadcast live on the Internet at www.whitehalljewellers.com.
Whitehall Jewellers, Inc. is a leading national specialty retailer of
fine jewelry operating 383 stores in 38 states as of July 31, 2003. The Company
has opened 19 new stores and closed six stores during fiscal 2003. The Company
operates stores in regional and superregional shopping malls under the names
Whitehall Jewellers, Lundstrom Jewelers and Marks Bros. Jewelers.
For Investor Relations info: investorrelations@whji.com
Internet Website: www.whitehalljewellers.com
This report contains certain forward-looking statements (as such term
is defined in Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934) and information relating to the Company that
are based on the current beliefs of management of the Company as well as
assumptions made by and information currently available to management including
statements related to the markets for our products, general trends and trends in
our operations or financial results, plans, expectations, estimates and beliefs.
In addition, when used in this report, the words "anticipate," "believe,"
"estimate," "expect," "intend," "plan," "predict" and similar expressions and
their variants, as they relate to the Company or our management, may identify
forward-looking statements. Such statements reflect our judgment as of the date
of this report with respect to future events, the outcome of which is subject to
certain risks, including the factors described below, which may have a
significant impact on our business, operating results or financial condition.
Investors are cautioned that these forward-looking statements are inherently
uncertain. Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results or outcomes may
vary materially from those described herein. Whitehall Jewellers undertakes no
obligation to update forward-looking statements. The following factors, among
others, may impact forward-looking statements contained in this report: (1) a
change in economic conditions or the financial markets which negatively impacts
the retail sales environment and reduces discretionary spending on goods such as
jewelry; (2) reduced levels of mall traffic caused by economic or other factors;
(3) our ability to execute our business strategy and the related effects on
comparable store sales and other results; (4) the extent and results of our
store expansion strategy and associated occupancy costs, and access to funds for
new store openings; (5) the high degree of fourth quarter seasonality of our
business; (6) the extent and success of our marketing and promotional programs;
(7) personnel costs and the extent to which we are able to retain and attract
key personnel; (8) the effects of competition; (9) the availability and cost of
consumer credit; (10) relationships with suppliers; (11) our ability to maintain
adequate information systems capacity and infrastructure; (12) our leverage and
cost of funds and changes in interest rates that may increase such costs; (13)
our ability to maintain adequate loss prevention measures; (14) fluctuations in
raw material prices, including diamond, gem and gold prices; (15) the extent and
results of our E-commerce strategies and those of others; (16) regulation
affecting the industry generally, including regulation of marketing practices;
(17) the successful integration of acquired locations and assets into our
existing operations; and (18) the risk factors identified from time to time in
our filings with the SEC.
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For Investor Relations info: investorrelations@whji.com
Internet Website: www.whitehalljewellers.com