SOURCE: Elegant Illusions

Elegant Illusions

September 17, 2009 17:29 ET

Elegant Illusions, Inc. Reports August 2009 Same Store and Company Wide Revenues and Store Closures

PACIFIC GROVE, CA--(Marketwire - September 17, 2009) - Elegant Illusions, Inc. (PINKSHEETS: EILL) announced today that same store revenues for August 2009 were down approximately 24% from August 2008. Company wide revenues were down approximately 30% from total revenues for August 2008 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. The Company has recognized the trend of shrinking discretionary funds for the last several years. Management believes that this trend will continue and increase due to rising energy costs, the shrinking access to credit and lower wages because of the shrinking manufacturing base in America. In response to this trend, we have closed our non performing locations in an orderly manner and expect to close additional stores in an orderly manner while maintaining a level of sales that will allow the Company to continue its 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 our products is through international sales; however we will not participate in any International Trade Shows in 2009, as previously announced. The Company is exploring other less capital intensive options to further develop its international business. We anticipate lower sales and store closures; however there will be corresponding lower expenses and 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 locations in San Francisco, Wailea and Lahaina, Maui in 2008. The Company also closed its location on Bourbon Street in New Orleans, Louisiana 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 Elegant Illusions location in the Riverwalk Marketplace, New Orleans remains open.

Company wide figures are based on the revenues of 16 stores in 2008 versus revenues of 12 stores in 2009.

Elegant Illusions, Inc. is engaged primarily in the created gem jewelry business with 17 specialty stores across the continental United States. The Company also has art galleries in Sarasota, Florida, Vail, Colorado 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