Zale Has Little Holiday Cheer, Comparable Store Sales Sink 18.6%

A sharp decline in sales at Zale's stores

Jewelry retailer Zale reported an 18.6 percent drop in comparable store sales in November, a time when it traditionally makes a large portion of its annual sales. This is bad news for the company, which reported that comparable store sales declined by 6.8 percent during the first quarter of fiscal 2010. Comparable store sales include Internet sales, as well.

Historically, the month of November has represented approximately 25 percent of Zale’s total revenues for the second quarter of the fiscal year. 

The company said that during the first quarter of fiscal 2010, it made “significant progress” toward realizing cost savings of approximately $24 million. 

Zale operates throughout the U.S., Canada and Puerto Rico. Its operations are divided into three business segments: fine jewelry, which focuses on diamond jewelry, kiosk jewelry and insurance operations offered primarily to Zale’s private label credit card customers.