Mixed Results for Zale's 2005 Holiday Shopping Season

Results were mixed as Zale Corporation today reported its figures for the 2005 holiday selling season. November comparable store sales decreased approximately 6 percent, while December comparable store sales increased over 3 percent and increased 0.9 percent for the combined months of November and December.

Total revenues for the two-month period also increased from $844 million to $861, an increase of 2 percent.

However, these figures do not take into account the 29 Bailey Banks & Biddle stores previously announced as designated for closure that were managed by an independent liquidator during the period. If these stores are taken into account, the total revenue for the two-month period was $873 million compared to last year's revenues of $861 million for the period, an increase of 1.4 percent.

A breakdown of the stores that make up Zale Corp also shows a mixed bag of results. Gordon's Jewelers, Bailey Banks & Biddle Fine Jewelers, Zales Outlet, and Zale Canada (Peoples Jewellers and Mappins Jewellers) each achieved a 6 percent or greater comparable store sales increase for the period, while Zales Jewelers and Piercing Pagoda combined for a comparable store sales decline of approximately 4 percent.

Zale's management was maintaining a positive attitude towards the results. "Although we are disappointed that we did not achieve our overall holiday sales objective, we are very pleased with the strong performances we had at four of the Company's six brands," commented Mary L. Forte, president and CEO. "The underperformance at our Zales brand and at Piercing Pagoda had a significant impact on our consolidated results."

Ms. Forte continued, "The repositioning at Zales is in its early stages and did not produce the results we expected this Holiday. However, the strong performance achieved by our other brands that are further along in a number of our corporate initiatives clearly indicates that the strategy is working and we are on the right track."

Zale Corporation is North America's largest specialty retailer of fine jewelry operating approximately 2,400 retail locations throughout the United States, Canada and Puerto Rico, as well as online.