Sex sells, even in a recession
November 14, 2008 at 2:41 pm by Wade Tatangelo
Everything from the auto industry to the real estate market to retail sales are in the shitter. People can barely get by on their take-home pay and put food on the table — but the flesh fantasy business is as robust as ever, according to this release by national strip club chain Rick’s Cabaret:
HOUSTON – (November 14 2008) – Rick’s Cabaret International, Inc. (NASDAQ: RICK), the premier chain of upscale gentlemen’s clubs, said its nightclub sales in October were $6.1 million, a 113 percent increase over October 2007. Sales at clubs operated for more than a year were up eight percent over the previous year’s October results.
“These results are so outstanding that we have made an exception to our policy of announcing sales only on a quarterly basis, so that we could bring the news out sooner,” said Eric Langan, President and CEO of Rick’s Cabaret.
Mr. Langan said that sales were up nearly 30 percent at the company’s flagship New York City club, which had a record month. Each of the company’s brands — Rick’s Cabaret, XTC Cabaret and Club Onyx — reported sales increases over the previous year.
“Our Tootsie’s Cabaret in Miami continues to perform ahead of original expectations,” said Mr. Langan. “Our newest club, Rick’s Cabaret Las Vegas, is dealing with the general slowdown in Las Vegas traffic.”
Mr. Langan said the company expects its next nightclub sales report will be made shortly after the end of the current quarter. The company will issue its fiscal 2008 and fourth quarter results and will hold a conference call in December, but has not yet selected a date.
About Rick’s Cabaret: Rick’s Cabaret International, Inc. (NASDAQ: RICK) operates upscale adult nightclubs serving primarily businessmen and professionals that offer live adult entertainment, restaurant and bar operations. The company owns, operates or licenses adult nightclubs in New York City, Miami, Philadelphia, Las Vegas, New Orleans, Charlotte, Dallas, Houston, Minneapolis and other cities under the names “Rick’s Cabaret,” “XTC,” “Club Onyx” and “Tootsie’s Cabaret”. Sexual contact is not permitted at these locations. Rick’s Cabaret also owns the adult Internet membership Web site, couplestouch.com, and a network of online adult auction sites under the flagship URL naughtybids.com. Rick’s Cabaret common stock is traded on NASDAQ under the symbol RICK. For further information contact ir@ricks.com.
Forward-looking Statements: This document contains forward-looking statements that involve a number of risks and uncertainties that could cause the company’s actual results to differ materially from those indicated in this document, including the risks and uncertainties associated with operating and managing an adult business, the business climates in New York City and elsewhere, the success or lack thereof in launching and building the company’s businesses in New York City and elsewhere, risks and uncertainties related to the operational and financial results of our Web sites, conditions relevant to real estate transactions, and numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. Rick’s has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.
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