SOURCE: Elegant Illusions

April 20, 2007 17:23 ET

Elegant Illusions, Inc. Reports 2006 Fiscal Year End Earnings

PACIFIC GROVE, CA -- (MARKET WIRE) -- April 20, 2007 --Elegant Illusions, Inc. (PINKSHEETS: EILL) reports a fiscal year end loss of $527,007 on revenues of $6,101,290 compared to a loss of $39,729 on revenues of $7,308,252 in fiscal 2005.

Same store sales for 2006 were down 7.8% from 2005. Company wide sales for 2006 compared to 2005 decreased 16.5%.

Same store sales do not include our three New Orleans stores as they were not open for the full 12 months due to Hurricane Katrina. The Bourbon Street locations re-opened for business approximately December 2, 2005 and the Riverwalk location has not yet re-opened.

Sales in 2006 for these three locations as compared to 2005 are down 51.1%. Management believes that these significant decreases in Company wide sales were a direct result of Hurricane Katrina, its continued effect in the aftermath and a reduction in sales at locations open more than a year. Historically, our New Orleans locations generate a significant amount of our revenues. As of December 31, 2005, we operated 21 retail locations and, as of December 31, 2006, we operated 19 retail locations, including the Naples, Florida and Philadelphia, Pennsylvania locations that were closed in January 2007.

Elegant Illusions, Inc. is engaged primarily in the created gem and copy jewelry business with 17 specialty stores across the continental United States.

This release includes certain forward-looking information that is based upon management's beliefs as well as on assumptions made by and data currently available to management. This information which has been, or in the future may be, included in reliance on the "safe harbor" provisions on the Private Securities Litigation Reform Act of 1995, is subject to a number of risks and uncertainties, including but not limited to the factors identified in the Company's 10-KSB and other documents filed with the Securities and Exchange Commission. Actual results may differ materially from those anticipated in such forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein may not be realized. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.

Contact Information

  • Contact:
    James Cardinal
    Elegant Illusions, Inc.
    (831) 649-1814
    Email Contact