DALLAS, Feb 07, 2008 (BUSINESS WIRE) -- Zale Corporation (NYSE:ZLC), a leading specialty retailer of fine
jewelry in North America, today reported that for the second quarter
ended January 31, 2008, comparable store sales decreased 7.3%.
Revenues for the second quarter were $827 million compared to $892
million last year, a decrease of 7.3%. As previously announced, the
sale of Bailey Banks & Biddle was completed on November 9, 2007 and
has been excluded from the results for both the current and comparable
The Company commented that while it had a 5.7% January comparable
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% to $1.204 billion,
compared to $1.274 billion for the same period last year. Year-to-date
comparable store sales decreased 5.1%.
Unrecognized revenues related to warranty sales increased $33
million for the second quarter. Year-to-date, unrecognized revenues
increased $47 million. 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.
The Company stated that for the second fiscal quarter ending
January 31, 2008 it continues to expect diluted earnings per share
from continuing operations to be in the previously stated range of
$1.08 to $1.13.
Zale Corporation will announce its second quarter 2008 earnings
results on February 21, 2008. A conference call will be held at 9:00
a.m. EST. Parties interested in participating should dial 706-643-7467
five minutes prior to the scheduled start time. A webcast of the call,
as well as replay, will be available on the Company's Web site at
www.zalecorp.com. For additional information, contact Investor
About Zale Corporation
Zale Corporation is a leading specialty retailer of fine jewelry
in North America, operating over 2,200 retail locations throughout the
United States, Canada and Puerto Rico, as well as online. Zale
Corporation's 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. Additional information on Zale Corporation
and its brands is available at www.zalecorp.com.
This release contains forward-looking statements, including
statements regarding the Company's earnings guidance for the second
fiscal quarter ending January 31, 2008. Forward-looking statements are
not guarantees of future performance and a variety of factors could
cause the Company's actual results to differ materially from the
results expressed in the forward-looking statements. These factors
include, but are not limited to: we have not completed closing our
books (and the closing process could impact some of the estimates we
are relying upon). For other factors, see the Company's filings with
the Securities and Exchange Commission, including its Annual Report on
Form 10-K for the fiscal year ended July 31, 2007. The Company
disclaims any obligation to update or revise publicly or otherwise any
forward-looking statements to reflect subsequent events, new
information or future circumstances.
SOURCE: Zale Corporation
David H. Sternblitz, 972-580-5047
Vice President and Treasurer