SOURCE: Elegant Illusions, Inc.

December 22, 2006 15:55 ET

Elegant Illusions, Inc. Reports November 2006 Revenues

PACIFIC GROVE, CA -- (MARKET WIRE) -- December 22, 2006 -- Elegant Illusions, Inc. (PINKSHEETS: EILL) announced today that total revenues for November 2006 were approximately 3% up from total revenues for November 2005. Same-store revenues for November 2006 were up approximately 10% up from November 2005.

The store on Bourbon St., located in New Orleans, reopened for business in the beginning of December 2005 and is generating approximately 50% of pre-Katrina revenues. The Riverwalk location in New Orleans remains closed. The loss of sales from these stores has had a major impact on same-store and Company-wide revenues for the period.

The Company closed its St. Croix stores in August and anticipates two more store closures in the first quarter of 2007.

"The Company has nearly completed a three-year consolidation and is now ready for growth," said James Cardinal, CEO of Elegant Illusions, Inc. "We are currently identifying new store locations that fit our revamped model. Our product is now fitted for the discretionary dollars of the upper-middle and the upper class." The Company believes its level of design and quality of workmanship can compare to Tiffany and Cartier and offer the opportunity to mix and match the finest natural gems from these houses with Elegant Illusions created gem jewelry.

The Company plans major advertising coverage in the second quarter of 2007 for its new line of Platinique, a platinum over silver jewelry line that it believes is the finest quality available. The trademarked name, Platinique, more describes the product than any name for similar products in the country. The Company plans to introduce this line in Europe in the second half of 2007.

The redesign of the Company's website for its jewelry was completed in November. Sales are not significant in the initial offering of product on this site. However, growth in sales is tracking upward on a weekly basis and is doing better year-to-date than last year on the original site.

The Company believes that the art gallery website will be completed by the end of January 2007 and art sales in 2007 will be a significant factor in profitability for the Company.

Company-wide figures are based on the revenues of 19 stores in 2006 versus revenues of 20 stores in 2005.

Elegant Illusions, Inc. is engaged primarily in the created gem jewelry business with 19 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