Zale Total Q3 Revenue Up 2.2%

Zale Corporation reported that total revenues for the third quarter ended April 30, 2006 increased by 2.2 percent to $526.9 million from last year's $515.6 million.

Last year's total revenues included $10.6 million from certain Bailey Banks & Biddle stores that were closed in this year's second fiscal quarter. Excluding these stores, total revenues increased 4.3 percent over last year's $505 million. Third quarter comparable store sales increased 2.5 percent.

Year-to-date total revenues increased 2 percent to $1.948 billion, from $1.911 billion for the comparable period last year. This includes $24.3 million and $39.5 million, for each year, respectively, from the closed Bailey Banks & Biddle stores. Excluding these stores, total revenues were $1.924 billion, compared to $1.871 billion last year, an increase of 2.8 percent. Year-to-date comparable store sales, which do not include the Bailey Banks & Biddle store closures, increased 1.1 percent.

Year-to-date net earnings totaled $81million. For the same period last year, net earnings were $102.7 million.

"We are pleased with our performance for the third quarter, especially the sales momentum we are gaining," commented Betsy Burton, Acting CEO. "Zales, Zale Canada, Zales Outlet, Bailey Banks & Biddle and Gordon's all produced positive comparable store sales, while margins and expenses were in line with our expectations."

The Company also announced guidance for the fourth fiscal quarter, with comparable store sales expected to increase in the low to mid-single digits.