Zale Corp. now expects to turn a profit in 2013 after revenues improved and the company narrowed its net loss in the fourth quarter.
“We made significant progress in returning Zale to profitability,” said CEO Theo Killion in a statement. “We recorded our seventh consecutive quarter of positive comps, reported a sizeable improvement in operating margin, and strengthened our capital structure. We look forward to building on this momentum in 2013.”
The company’s net loss totaled $20 million in the fourth quarter, down from a net loss of $33 million during the same period last year. Zale’s net loss for the fiscal year 2012 totaled $27 million, down from $112 million in fiscal year 2011.
Revenues increased to $407 million, up 7.9 percent compared to the fourth quarter last year. The revenues include $7.6 million resulting from the previously disclosed change in warranty revenue recognition.
U.S. fine jewelry brands—Zales Jewelers, Zales Outlet, and Gordon’s Jewelers—increased comparable store sales 11.2 percent. This increase follows a 9.7 percent rise in the same period last year. Overall comparable store sales were up 8.3 percent, following a 9.8 percent rise last year.
Other highlights from Zale Corp.’s financial statement for fiscal year 2012:
- Revenues: $1.87 billion, up 7.1%
- Comparable store sales: Up 6.9%
- Zales Jewelers, Zales Outlet, and Gordon’s Jewelers comparable store sales: Up 9.5%