×
The email you entered is not valid.
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/.

GET WEEKLY ALERTS

Sign up to receive our stories in your inbox.

The email you entered is not valid.

LET US HELP

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.

DATA PROVIDER SPOTLIGHT

ETR Research

ETR is a primary technology market research firm, capturing real-time evaluations and spending intentions from thousands of enterprise-leading technologists.

For almost 10 years, Global 2000 corporations have trusted ETR’s proprietary technology research to capture real-time market activity. ETR produces market research through standardized surveys and round table discussions, not analyst opinions – our data driven approach quantifies the narrative driving the technology landscape. Marketing, Investor Relations, Corporate Strategy and Corporate Venture Capital teams no longer need to rely on anecdotal evidence to make business decisions. Vendors covered in our surveys gain mindshare among global IT leadership & gain key insights into navigating their competitive landscapes.

GET WEEKLY ALERTS

Sign up to receive our stories in your inbox.

The email you entered is not valid.

LET US HELP

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.

DATA PROVIDER SPOTLIGHT

ETR Research

ETR is a primary technology market research firm, capturing real-time evaluations and spending intentions from thousands of enterprise-leading technologists.

For almost 10 years, Global 2000 corporations have trusted ETR’s proprietary technology research to capture real-time market activity. ETR produces market research through standardized surveys and round table discussions, not analyst opinions – our data driven approach quantifies the narrative driving the technology landscape. Marketing, Investor Relations, Corporate Strategy and Corporate Venture Capital teams no longer need to rely on anecdotal evidence to make business decisions. Vendors covered in our surveys gain mindshare among global IT leadership & gain key insights into navigating their competitive landscapes.