-
Comparable store sales increased by 5.9%
-
Revenues of $564 million, up 5.8% compared to prior year
DALLAS--(BUSINESS WIRE)--Jan. 10, 2012--
Zale Corporation (NYSE: ZLC) today announced that comparable store sales
increased 5.9% for the combined months of November and December 2011,
encompassing the entire holiday selling period. This increase follows an
8.5% rise in the same period last year. Within this two-month period,
comparable store sales increased 10.1% in November and 4.2% in December.
At constant exchange rates, which exclude the effect of translating
Canadian currency denominated sales into U.S. dollars, comparable store
sales increased 6.2% for the holiday selling period, compared to an
increase of 7.6% in the prior year period.
Revenues for the two-month period were $564 million compared to $533
million in the same period last year, an increase of 5.8%. Revenues
include approximately $10 million resulting from the change in warranty
revenue recognition.
Holiday selling period comparable store sales
detail:
-
U.S. Fine Jewelry brands (~69% of annual revenues), consisting of
Zales Jewelers, Zales Outlet and Gordon’s Jewelers, had an increase in
comparable store sales of 9.0%. This increase follows a 7.5% rise in
the same period last year.
-
Canadian Fine Jewelry brands (~17% of annual revenues), consisting of
Peoples Jewellers and Mappins Jewellers, had an increase in comparable
store sales of 0.2%. This increase follows a 15.6% rise in the same
period last year. At constant exchange rates, Canadian Fine Jewelry
brands comparable store sales increased 1.7%, compared to an increase
of 10.2% in the prior year period.
-
Kiosk Jewelry (~14% of annual revenues) comparable store sales
decreased 2.1%. In the same period last year, Kiosk Jewelry comparable
store sales rose 4.2%.
For the quarter ending January 31, 2012, the Company expects gross
margin to be consistent with the prior year quarter’s gross margin of
50.3%. Operating margin is expected to be slightly below the prior year
quarter’s operating margin of 7.0% due to higher selling, general and
administrative expenses primarily driven by the holiday advertising
campaign and marketing for the launch of proprietary products.
Next Scheduled Announcement
The Company expects to report its second quarter fiscal 2012 results on
Wednesday, February 22, 2012 with a conference call at 9:00 a.m. Eastern
Time that day.
About Zale Corporation
Zale Corporation is a leading specialty retailer of diamonds and other
jewelry products in North America, operating approximately 1,820 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,
www.zalesoutlet.com,
www.gordonsjewelers.com,
www.peoplesjewellers.com
and www.pagoda.com.
Additional information on Zale Corporation and its brands is available
at www.zalecorp.com.
This release contains forward-looking statements, including
statements regarding future margins and profitability. 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: if the general economy
continues to perform poorly, discretionary spending on goods that are,
or are perceived to be, “luxuries” may decrease; the concentration of a
substantial portion of the Company’s sales in three, relatively brief
selling seasons means that the Company’s performance is more susceptible
to disruptions; most of the Company’s sales are of products that include
diamonds, precious metals and other commodities, and fluctuations in the
availability and pricing of commodities could impact the Company’s
ability to obtain and produce products at favorable prices; the
Company’s sales are dependent upon mall traffic; the Company operates in
a highly competitive industry; the financing market remains difficult,
and if we are unable to meet the financial commitments in our current
financing arrangements it will be difficult to replace or restructure
these arrangements; and changes in regulatory requirements may increase
the cost or adversely affect the Company’s operations and its ability to
provide consumer credit and write credit insurance. For other factors,
see the Company's filings with the Securities and Exchange Commission,
including its Quarterly Report on Form 10-Q for the fiscal quarter ended
October 31, 2011. 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, except as
required by law.
Source: Zale Corporation
Zale Corporation
Roxane Barry, 972-580-4391
Director of
Investor Relations
