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Business

Government Dollars for Claire’s

Source: https://www.earnestresearch.com/data-bites/government-dollars-for-claires/

Teen/tween retailer Claire’s, known primarily for its fashion jewelry and ear piercing services, has filed for an IPO—several years after a private equity takeover and emergence from Chapter 11 bankruptcy. In its recent prospectus, Claire’s noted that for the first half of fiscal year 2021, North American sales grew 124.3% compared to 2020 and 23.2% compared to 2019; much of this was driven by ear piercing-related transactions.

With Claire’s core demographic being Gen Z, we examined how the Child Tax Credit payouts, as well as the government-issued stimulus checks earlier this year, may have impacted spending. Pre-COVID, there was a 7-15% delta in outspending amongst the cohort that would eventually receive government aid—unsurprising, since this group consists of households with children. However, that delta nearly doubled to 20-30% in ‘21, once Child Tax Credit and stimulus checks* began to pay out. Indeed, Claire’s S-1 posits that the American Rescue Plan Act of 2021 “had a positive impact on [their] sales in the United States in the first half of fiscal year 2021.”

While it appears government aid has contributed to outspending at Claire’s, it’s uncertain what this growth means for the company’s long-term success. Will Claire’s turn out to be a comeback story, or will their recent growth prove to be merely a temporary bump?

To learn more about the data behind this article and what Earnest Research has to offer, visit https://www.earnestresearch.com/.

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Data is changing the speed of business. Investors, Corporations, and Governments are buying new, differentiated data to gain visibility make better decisions. Don't fall behind. Let us help.

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Advan provides hedge funds and institutional investors with unmatched insights into both foot and vehicle traffic to enable better investment decisions. Using precise, manual geofencing, it has the most extensive and accurate location data, available in seconds through an intuitive, self-service dashboard. Its institutional-grade analytics allow fast and actionable insights into customer behavior and corporate activity.

Advan is headquartered in New York City. For more information please visit www.advan.us