SOURCE: Elegant Illusions

Elegant Illusions

May 24, 2010 14:01 ET

Elegant Illusions, Inc. Reports April 2010 Same Store and Company Wide Revenues

PACIFIC GROVE, CA--(Marketwire - May 24, 2010) -  Elegant Illusions, Inc. (PINKSHEETS: EILL) announced today that same store revenues for April 2010 were down approximately 11% from April 2009. Company wide revenues were down approximately 20% from total revenues for April 2009 while operating four fewer locations.

Management on a continual basis for the last four years has invested strongly in inventory while gold was at lower prices. We have kept our leases in option form, thereby being able to move with the changes in the economy. We have moved our jewelry design and price point to appeal to the upper middle class and above. Unemployment will remain high and underemployment higher. That combined with virtually no access to home equity lines that were a boon to retailers point to a downward trend for years to come. Additionally management believes that rising energy costs, the shrinking access to credit and lower wages because of an almost non-existent manufacturing base in America will add to the trend. In response, we continue to close our non performing locations and expect to close additional stores in an orderly manner while maintaining a level of sales that will allow the Company to continue moving into different markets that have a maximum return with a minimal initial risk of capital investment. The Company continues to evolve and move its concept into the upper classes where we believe we provide tremendous value and uniqueness. We believe a viable avenue to broaden sales of products is through international sales, however we will not participate in any International Trade Shows in 2010. The Company is exploring other less capital-intensive options to further develop its international business. We anticipate continued lower sales, and store closures, however there will be corresponding lower expenses; we remain nearly debt free with strong equity. We anticipate the Company will be ready to deliver on any opportunity that it is presented with and will continue to be on solid footing.

Elegant Illusions closed its Newport Beach location April 30, 2010. Elegant Illusions closed locations in San Francisco, Wailea and Lahaina, Maui in 2008 as well as its location on Bourbon Street in New Orleans, when the lease was not renewed due to the development of a new convention center in the Inn on Bourbon St where the Elegant Illusions store and Cardinal Gallery were located. The location in the Riverwalk Marketplace, New Orleans remains open.

Company wide figures are based on the revenues of 12 stores in 2009 versus revenues of 10 stores in 2010.

Elegant Illusions, Inc. is engaged primarily in the created gem jewelry business with 10 specialty stores across the continental United States. The Company also has art galleries in Sarasota, Vail, and New Orleans.

This release includes certain forward-looking information. This forward-looking information involves certain risks and uncertainties which could cause actual results to differ materially from those discussed herein including, but not limited to, risks relating to changing economic conditions, competitive pressures and changes in expenses (such as changes in labor, rent and/or inventory purchase costs). Forward-looking information generally is information stated to be anticipated, expected or projected by the Company. We caution readers that any such forward-looking statements are based on our current expectations and beliefs but are not guarantees of future performance. Actual results could differ materially from those expressed or implied in the forward-looking statements. 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