Wall Street Journal
By Melodie Warner
Zale Corp.'s fiscal-third-quarter loss narrowed as the jewelry retailer registered double-digit gains in revenue and same-store sales.
For the quarter ended April 30, Zale reported a loss of $8.99 million, or 28 cents a share, compared with a loss of $12.1 million, or 38 cents, a year earlier. The loss from continuing operations narrowed to 31 cents a share from 46 cents. Revenue jumped 14% to $411.8 million. Gross margin slipped to 50.1% from 50.8%.
Same-store sales rose 15.2%, the second consecutive quarter of growth. Inventory jumped 9% to $756 million.
"Our results validate that the work we've done to improve our marketing, our product and our guest experience is beginning to take hold," said Chief Executive Theo Killion.
Zale, of Irving, Texas, is attempting a turnaround after several years of reduced quarterly sales, though the declines have slowed of late. The company has closed a number of stores over the past few years as the recession and its own missteps hurt results. It faced a cash shortage last year that sent it scrambling to raise capital.
