UPDATE 1-Finlay to stop operating at 94 Macy's stores

(Adds details on Macy's business, CEO comment)

NEW YORK, Feb 7 (Reuters) - Finlay Enterprises Inc FNLY.O on Thursday said fourth-quarter comparable store sales fell 6.4 percent and licenses at 94 of its 316 locations at Macy's Inc (M.N) stores will not be renewed.

Finlay, which operates jewelry stores and counters at department stores, said the licenses won't be renewed as a result of Macy's restructuring, which involves cutting 2,300 jobs and the closing of certain division headquarters as it aims to reduce costs and offset falling sales. The licenses are scheduled to expire on Jan. 31, 2009, Finlay said.

"While we are disappointed with the prospect of losing a portion of our Macy's business in January 2009, we will retail 222 Macy's locations and all of our Bloomingdales locations," Finlay Chief Executive Arthur Reiner said in a statement.

Its Macy's business generated nearly $338 million in revenue in 2007, Finlay said, adding that it's still evaluating how its future financial results will be impacted.

The company said overall fourth-quarter sales climbed 24.1 percent to $383.4 million. (Reporting by Justin Grant, editing by Mark Porter)