Zale comps slip nearly 4 percent

Majors

Save

E-mail

Zale comps slip nearly 4 percent

By Michelle Graff

November 25, 2008

Similar Stories | Topics

STORIES

Zale sticking by product-centric strategy

Zale CEO offers turnaround plan at Rap conference

Sales down 18 percent for Zale

Shake-up at the top for Zale

Zale 4Q sales up 6 percent

TOPICS

Zale's 1,399 stores include 135 "Pacesetter" stores, locations where the company has implemented the complete slate of décor and merchandise changes.

Irving, Texas--Despite its efforts to offer new merchandise and update the look of its stores, Zale Corp. announced that its same-store sales declined 3.7 percent in the first quarter 2009 amid souring U.S. economic conditions.

In an earnings call held on Tuesday morning, the chain retailer reported that revenues for the first quarter ended Oct. 31 were $364 million, compared with $377 million in the prior period, a decline of 3.5 percent.

Net losses in the first quarter totaled $45.3 million, up 69.7 percent from $26.7 million at the same time a year ago.

Speaking during the conference call, Zale President and Chief Executive Officer Neal Goldberg said that while the U.S. mall store environment was "challenging," Zale's Piercing Pagoda locations and online sales in Canada continue to do well.

Heading into the holiday season and the new year, he said Zale would continue to focus on attracting "value-oriented" customers and aggressively managing its expenditures. Despite the challenging economic conditions, Goldberg said, people still will shop, and recent research shows that women continue to desire jewelry as a gift.

"There will be a customer out there shopping this holiday," he said. "We want our unfair share of the market, whatever that may be."

Though Zale saw same-store sales decline amid grim economic conditions, its average ticket increased 2 percent in the first quarter, an uptick driven by new merchandise--such as the "Hello Kitty" line and Zale's branded "Celebration diamond"--and better-quality products, Goldberg said.

Moving forward, Chief Financial Officer Rodney Carter said the company will not meet previously forecasted earning expectations for 2009, given the decline in general retail sales that began in October.

As of the close of its first quarter 2009, Irving, Texas-based Zale operated a total of 1,399 stores and 731 kiosks, including the 135 stores identified as "Pacesetter" stores, stores the company is using as a testing ground for its new store decor and merchandise.

The company plans to open six new stores in the coming year, Goldberg said.

Save

E-mail

Majors

Zale slapped with shareholder class-action suit

A shareholders' class-action lawsuit has been filed against Zale Corp., its chief executive officer and three former executives, claiming the Irving, Texas-based, 1,931-store chain deliberately deceived investors. Read More

JCOC: 11 percent to purchase jewelry this holiday

Penney's 'Doghouse' lives to bark another season

More Majors

More Like This

Zale sticking by product-centric strategy

May 18, 2009 | National Jeweler Network

Zale CEO offers turnaround plan at Rap conference

September 09, 2008 | National Jeweler Network

Sales down 18 percent for Zale

February 25, 2009 | National Jeweler Network

Shake-up at the top for Zale

December 20, 2007 | National Jeweler Network

Zale 4Q sales up 6 percent

August 28, 2008 | National Jeweler Network

TOPICS

Design Portfolio

BROWSE

Video

Retailer Toolbar

America's Best Jewelers
Join the ONLY Social Network for Jewelry Retailers. Get access to expert content, peer best practices, and more.
Start networking today.

Newsletters
Topic-specific newsletters that deliver the latest news on jewelry, diamonds, wholesale operations and high-volume buying directly to your in-box.

ReaderConnect
Supplier information presented with every article, bringing you related, actionable content on every topic.

Yellow Pages
A comprehensive listing of associations, organizations, suppliers and services for the jewelry industry.

Classifieds
A comprehensive listing of job postings, product offerings and other materials for sale for the jewelry industry.

CustomerConnect
The most sophisticated suite of marketing services available for jewelry retailers, from Internet tools to data marketing.