Zale Reports Flat Sales and a Net Loss for the First Quarter

By JCK Online Staff -- JCK Online, 11/17/2006 9:48:00 AM

Zale Corp. reported a net loss, of $26.4 million for first quarter ended Oct. 31. The Dallas-based company reported sales of $432.5 million compared to $427.6 million for the same period of the previous year, an increase of 1.1 percent. Comparable store sales for the first quarter increased 0.4 percent.

"Earnings performance met expectations for the quarter and comparable store sales were consistent with plan as we moved through clearance and increased transactions were offset by a lower average ticket," said Betsy Burton, Zale president and chief executive officer. "We executed our plan for the quarter which included resetting all Zales stores with new and expanded assortments, clearing as much non-program merchandise as possible and making investments in payroll and inventory to prepare for a successful Holiday."

Zale Corp. is North America’s largest specialty retailer of fine jewelry operating approximately 2,366 retail locations throughout the United States, Canada, and Puerto Rico, as well as online. Its brands include Zales Jewelers, Zales Outlet, Gordon’s Jewelers, Bailey Banks & Biddle Fine Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Zale also operates online at www.zales.com and www.baileybanksandbiddle.com.