EX-99.1 News Release

Exhibit 99.1

NEWS BULLETIN RE: CLAIRE’S STORES, INC.

3 S.W. 129th AVENUE, PEMBROKE PINES, FLORIDA 33027 (954) 433-3900

CLAIRE’S STORES, INC. REPORTS THIRD QUARTER RESULTS -
REVENUES INCREASE SIX PERCENT;
DILUTED NET INCOME PER SHARE INCREASES TO $0.39;
COMPANY DECLARES REGULAR QUARTERLY DIVIDEND

PEMBROKE PINES, Florida, November 16, 2006. Claire’s Stores, Inc. (NYSE:CLE) today announced financial results for the third quarter of Fiscal 2007. The Company also provided guidance relating to the fourth quarter of Fiscal 2007 as well as the full fiscal year.

Third Quarter Results
Results for the third quarter of Fiscal 2007, which ended October 28, 2006, were as follows: Net income fell four percent to $36.6 million compared to $38.1 million during the third quarter of Fiscal 2006, which ended October 29, 2005. On a per share basis, diluted net income during the third quarter of Fiscal 2007 rose three percent to $0.39 compared to $0.38 during the third quarter of Fiscal 2006.

For the third quarter of Fiscal 2007, net sales increased six percent to $347.6 million from $327.3 million for the same period last year. Comparable store sales for the third quarter of Fiscal 2007 were flat, after achieving a nine percent increase in last year’s third fiscal quarter.

Third quarter comparable store sales were as follows:

	•		Claire’s North America: positive low single digits

	•		Claire’s Europe: negative low single digits

	•		Icing by Claire’s: negative mid single digits

Commenting on third quarter results, Co-Chairman and Co-Chief Executive Officer Marla Schaefer said, “In August, we advised the financial community that we were taking a more cautious approach to our third quarter guidance due to the difficult comparisons between this third quarter and last year’s third fiscal quarter. Over the past four years, we have created a robust jewelry business as increasing levels of consumer demand for fashion jewelry drove sales. While current trends continue to emphasize fashion jewelry, our customers are moving towards simpler, more streamlined looks and value priced items. Additionally, there is renewed interest in our accessory offerings which are, for the most part, lower margin products. Our third quarter financial results have been impacted by this shift in trends, and we have adjusted our fourth quarter and full year forecast as well. As we move into spring and a new fashion season, we anticipate a return to a more robust performance.”

Bonnie Schaefer, Co-Chairman and Co-Chief Executive Officer, offered additional commentary on the third quarter of Fiscal 2007. “As stated last quarter, we are making progress in terms of addressing issues relating to store performance in Europe. The look of our stores and the quality of the day to day shopping

experience, in terms of things such as customer service, better marketing materials and improved compliance with plan-o-grams is coming up to the standards of our North American operation. At the same time, I referenced various operational issues relevant to our international stores where further improvements will be implemented. Our focus now is on planning and allocation and pricing practices that we are examining and modifying to better serve our European customers. As these and other initiatives move forward, we believe that our performance in Europe will begin to show improvements.”

Year to Date Results

For the first nine months of Fiscal 2007, sales grew six percent to $1,008.7 million from $955.0 million. Net income decreased one percent to $102.3 million from $103.3 million and on a diluted per share basis, net income increased one percent to $1.05 per diluted share from $1.04 per diluted share during the first nine months of Fiscal 2006. Comparable store sales increased two percent, compared with an increase of six percent during the first nine months of Fiscal 2006.

Store Count: End of Third Fiscal Quarter:


	October 28, 2006		October 29, 2005
Claire’s North America		1,699		1,688
Claire’s Europe		842		750
Icing by Claire’s		446		443
Claire’s Nippon		192		167


Total		3,179		3,048

Business Outlook for the Fourth Fiscal Quarter and Full Year — Fiscal 2007

Fourth Quarter:

For the fourth quarter of Fiscal 2007, we are estimating revenues between $461 and $474 million, an increase of 11 to 14 percent. Comparable store sales are projected to rise by one to two percent. This follows an increase of six percent in the fourth quarter of Fiscal 2006. Net income is projected to reach $0.78 to $0.84 per diluted share, assuming an average of approximately 93.3 million shares outstanding.

Full Year:

For Fiscal 2007 in its entirety, the Company’s revised projections are for revenues to grow by approximately seven to eight percent to approximately $1.47 billion to $1.48 billion. Comparable store sales are expected to increase by one to two percent.

Gross margins as a percentage of sales are anticipated to decline approximately 100 basis points. SG&A is projected to decrease as a percentage of sales, resulting in a 10 to 30 basis point improvement.

Net income on a diluted per share basis is projected to reach $1.82 to $1.87. This projection assumes that the diluted weighted average number of shares outstanding will approximate 96.2 million for Fiscal 2007.

Stock Buyback Activity

As of the end of the third quarter of Fiscal 2007, we repurchased approximately 7.1 million shares of common stock at a total cost of approximately $200 million, thereby completing the authorized buyback.

Quarterly Dividend

The Board of Directors has declared the regular quarterly cash dividend of $0.10 per share payable on the Common Stock and $0.05 per share payable on the Class A Common Stock. Payment will be made on December 15, 2006 to shareholders of record on December 5, 2006.

Conference Call Information

The Company will host its third quarter conference call on November 16, 2006, at 10:00 a.m. (EST). The call in number is 210-795-9101 and the password is “Claires.” A replay will be available through November 24, 2006. The replay number is 203-369-1696 and the password is 25247. The conference call is also being webcast and archived until November 24^th on the Company’s corporate website at http://www.clairestores.com, where it can be accessed by clicking on the “Conference Calls” link located under “Financial Information” for a replay or download as an MP3 file.

Company Overview
Claire’s Stores, Inc., is a leading international specialty retailer offering value-priced costume jewelry and accessories to fashion-aware tweens, teens and young adults through its two store concepts: Claire’s and Icing by Claire’s. While the latter operates only in North America, Claire’s operates internationally. As of October 28, 2006, Claire’s Stores, Inc. operated approximately 2,985 stores in the United States, Canada, Puerto Rico, the Virgin Islands, the United Kingdom, Ireland, France, Switzerland, Austria, Germany, Belgium, Holland, Portugal and Spain. Claire’s Stores, Inc. operates through its subsidiary, Claire’s Nippon, Co., Ltd., approximately 190 stores in Japan as a 50:50 joint venture with AEON, Co., Ltd. (fka JUSCO, Co. Ltd.), a $40 billion specialty retailer headquartered in Japan. The Company also licenses approximately 110 stores in the Middle East and Turkey under a licensing and merchandising agreement with Al Shaya Co., Ltd. and seven stores in South Africa under similar agreements with The House of Busby Limited.

Forward-looking Statements
This press release contains “forward-looking statements” which represent the Company’s expectations or beliefs with respect to future events. Statements that are not historical are considered forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated. Those factors include, without limitation: changes in consumer preferences and consumer spending for pre-teen, teen and young adult apparel and accessories; competition; general economic, political and social conditions such as war, political unrest and terrorism; natural disasters or severe weather events; currency fluctuations and exchange rate adjustments; changes in laws; uncertainties generally associated with the specialty retailing business; disruptions in our supply of inventory; inability to increase comparable store sales at recent historical rates; inability to design and implement new information systems; delays in anticipated store openings

or renovations; and uncertainty that definitive financial results may differ from preliminary financial results due to, among other things, final GAAP adjustments. These and other applicable risks, cautionary statements and factors that could cause actual results to differ from the Company’s forward-looking statements are included in the Company’s filings with the SEC, specifically as described in the Company’s annual report on Form 10-K for the Fiscal year ended January 28, 2006. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances. The historical results contained in this press release are not necessarily indicative of the future performance of the Company.

Additional Information:

Note: Other Claire’s Stores, Inc. press releases, a corporate profile and most recent 10-K and 10-Q reports are available via Claire’s Internet home page: http://www.clairestores.com.

Contact Information: Marisa F. Jacobs, Vice President of Corporate Communications and Investor
Relations
Phone: (212) 594-3127, Fax: (212) 244-4237 or Email at marisa.jacobs@claires.com

CLAIRE’S STORES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)


	THREE MONTHS ENDED										NINE MONTHS ENDED
	October 28,					October 29,					October 28,					October 29,
	2006					2005					2006					2005
Net sales	$	347,593,000		100.0	%	$	327,259,000		100.0	%	$	1,008,680,000		100.0	%	$	955,009,000		100.0	%
Cost of sales, occupancy and buying expenses		165,487,000		47.6	%		151,541,000		46.3	%		480,540,000		47.6	%		442,084,000		46.3	%


Gross profit		182,106,000		52.4	%		175,718,000		53.7	%		528,140,000		52.4	%		512,925,000		53.7	%


Other expenses (income):
Selling, general and administrative		118,860,000		34.2	%		112,631,000		34.4	%		348,645,000		34.6	%		334,722,000		35.0	%
Depreciation and amortization		14,249,000		4.1	%		12,318,000		3.8	%		41,319,000		4.1	%		36,442,000		3.8	%
Interest and other income		(3,933,000	)	(1.1	%)		(3,761,000	)	(1.1	%)		(13,181,000	)	(1.3	%)		(8,805,000	)	(0.9	%)


		129,176,000		37.2	%		121,188,000		37.0	%		376,783,000		37.4	%		362,359,000		37.9	%

Income before income taxes		52,930,000		15.2	%		54,530,000		16.7	%		151,357,000		15.0	%		150,566,000		15.8	%

Income taxes		16,303,000		4.7	%		16,403,000		5.0	%		49,067,000		4.9	%		47,279,000		5.0	%


Net income	$	36,627,000		10.5	%	$	38,127,000		11.7	%	$	102,290,000		10.1	%	$	103,287,000		10.8	%


Net income per share:

Basic:
Net Income per share	$	0.39				$	0.38				$	1.05				$	1.04


Diluted:
Net Income per share	$	0.39				$	0.38				$	1.05				$	1.04


Weighted average number of shares outstanding:
Basic		94,414,000					99,140,000					97,045,000					99,063,000


Diluted		94,605,000					99,534,000					97,324,000					99,448,000

CLAIRE’S STORES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)


	October 28, 2006			October 29, 2005
ASSETS

Current assets:
Cash and cash equivalents	$	244,551,000		$	359,757,000
Inventories		158,853,000			147,354,000
Prepaid expenses		24,457,000			21,027,000
Other current assets		44,680,000			35,197,000

Total current assets		472,541,000			563,335,000


Property and equipment:
Land and building		17,350,000			18,151,000
Furniture, fixtures and equipment		274,278,000			247,375,000
Leasehold improvements		284,032,000			231,800,000

		575,660,000			497,326,000
Less accumulated depreciation and amortization		(314,745,000	)		(279,775,000	)

		260,915,000			217,551,000


Intangible assets, net		61,461,000			54,392,000
Other assets		17,725,000			14,363,000
Goodwill		200,227,000			198,977,000

		279,413,000			267,732,000



Total assets	$	1,012,869,000		$	1,048,618,000


LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Trade accounts payable	$	77,880,000		$	74,849,000
Income taxes payable		20,892,000			15,887,000
Accrued expenses		101,374,000			87,827,000

Total current liabilities		200,146,000			178,563,000


Long-term liabilities:
Deferred tax liability		19,896,000			22,094,000
Deferred rent expense		24,411,000			20,966,000
Other liabilities		2,274,000			—

Total long-term liabilities		46,581,000			43,060,000


Stockholders’ equity:
Class A stock — par value $0.05 per share		244,000			256,000
Common stock — par value $0.05 per share		4,408,000			4,713,000
Additional paid-in capital		74,373,000			56,102,000
Accumulated other comprehensive income, net of tax		30,961,000			19,409,000
Retained earnings		656,156,000			746,515,000

Total stockholders’ equity		766,142,000			826,995,000

Total liabilities and stockholders’ equity	$	1,012,869,000		$	1,048,618,000