Zale Same-Store Sales Down 7.3%
-- JCK-Jewelers Circular Keystone, 2/7/2008 7:25:00 AM
Specialty jewelry retailer Zale Corp. reported that same-store sales fell 7.3 percent for the second quarter ended Jan. 31. Revenues for the period also declined 7.3 percent to $827 million. Results do not include the Bailey Banks & Biddle chain, which the Dallas-based company sold to Finlay Enterprises, Inc. on Nov. 9, 2007.
The company said that while it had a 5.7 percent January same-store sales increase, approximately 3 percentage points were related to the timing of a Valentine’s Day customer appreciation event.
Year-to-date total revenues decreased 5.5 percent to $1.204 billion Year-to-date same-store sales declined 5.1 percent.
Unrecognized revenues related to warranty sales increased $33 million for the second quarter. Year-to-date, unrecognized revenues increased $47 million, the company said. This increase reflects the incremental cash collected and the future positive impact to earnings as a result of the previously announced change to the Company’s accounting method for its lifetime jewelry protection plans.
Zale Corp. is a leading specialty retailer of fine jewelry in North America, operating more than 2,200 retail locations throughout the United States, Canada, and Puerto Rico, as well as online. Its brands include Zales Jewelers, Zales Outlet, Gordon's Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Zale also operates online at www.zales.com and www.gordonsjewelers.com.
