Same-store sales at Whitehall Jewelers Holdings Inc. decreased 13.8 percent for the fourth quarter ended Feb. 2, and net sales were $85.3 million compared with $102.3 million for the same period last year, the company announced today.

According to Whitehall, $0.6 million of the net sales decrease was attributable to store closings and stores closed for remodeling for limited periods, while worsening economic conditions and less consumer spending on discretionary jewelry items contributed to the decline in comparable-store sales.

"We are disappointed in our fourth-quarter results, as the challenging macro economic environment led to a slowdown in full-price selling, lower average ticket price and decreased unit sales," Whitehall Chairman of the Board Ed Dayoob said in a media release issued on Friday. "However, the current economic condition is creating opportunities for us to capitalize on our management expertise and infrastructure, demonstrated by our recent acquisition of certain assets of Friedman's and Crescent Jewelers, including 78 retail locations. This is an important component of our strategic plan to grow both organically by improving our same-store sales as well as through opportunistic acquisitions."

In addition, Dayoob noted, the company closed 10 stores in the fourth quarter, bringing the total number of stores closed in fiscal 2007 to 18, and opened one during the year.

Net sales for fiscal 2007 were $242.9 million, down 8.8 percent from $266.2 million in fiscal 2006.

According to Whitehall, this was due primarily to a 7.5 percent decline in same-store sales as a result of a lower average price per item sold, as well as sales declines of $6.6 million and $1.8 million, due to store closings and stores closed for remodeling for limited periods, respectively.

These declines were partially offset by $1.8 million in sales from two additional days in fiscal 2007 from the change to 4-5-4 reporting periods and $2.2 million in sales from new stores.

Whitehall has closed eight additional stores in the first quarter of fiscal 2008, and currently has 375 stores, including 78 from a recent acquisition.

Looking ahead, Dayoob said he will continue to evaluate Whitehall's store base and close underperforming stores accordingly in fiscal 2008 to position the company for long-term success.