By Nathan Becker
Zale Corp. said the Securities and Exchange Commission has completed an investigation of the jewelry retailer's accounting and won't pursue any enforcement action.
The regulator launched its investigation in October 2009 after Zale restated its 2008 and 2009 earnings. The company at the time said a financial audit had uncovered internal control and accounting issues related to advertising costs, income taxes and internal company payments, among other things.
"We are glad to share with our investors and employees that this matter is now behind us," said Chief Executive Theo Killion.
Dallas-based Zale is attempting a turnaround after several years of sagging sales. The company has closed a number of stores over the past few years due to the recession and because of a cash shortage last year.
Zale in February said its fiscal second-quarter profit more than quadrupled as strong holiday sales propelled the company to its first quarterly revenue gain in years.
