SOURCE: Elegant Illusions

November 28, 2007 19:22 ET

Elegant Illusions, Inc. Reports Third Quarter Ending September 30, 2007, Earnings

PACIFIC GROVE, CA--(Marketwire - November 28, 2007) - Elegant Illusions, Inc. (PINKSHEETS: EILL), for the quarter ending September 30, 2007, reports a loss of $59,991 on revenues of $1,375,529 compared to a loss of $98,379 on revenues of $1,508,798 for the same quarter in 2006.

Same store sales for the quarter ending September 30, 2007 were down 0.5% as compared to the same quarter in 2006. Company wide sales for the quarter ending June 30, 2007 were down 8.8% as compared to the same quarter in 2006.

As of September 30, 2007, we operated 16 retail locations excluding the Riverwalk location and, as of September 30, 2006, we operated 19 retail 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 large retail companies. While we have yet to realize any positive results in this area, we are continuing our efforts in this area. We anticipate lower sales, and store closures, however there will be corresponding lower expenses and we anticipate this Company will be debt free and ready to deliver on any opportunity that it is presented with.

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