Zale Revenues Improve, Losses Shrink

(IDEX Online News) – Zale posted improved results for the first quarter of the fiscal year. The American jewelry retailer reported a 7.3 percent rise in revenues to $351 million. The rise in revenues outpaced the 5.8 percent increase in comparable store sales.

Comparable store sales in the quarter ended October 31, 2011 are especially impressive when compared to a decrease of 1.1 percent during the same period last year.

At constant exchange rates, which exclude the effect of translating Canadian currency denominated sales into U.S. dollars, comparable store sales increased 5.2 percent for the quarter.

Gross margin was $188 million, an increase of 13.7 percent. Zale achieved gross margin of 53.5 percent, compared to 50.5 percent in the comparable quarter last year.

The improvement was achieved through a combination of price increases and lower levels of merchandise discounts, partially offset by the impact of rising commodity costs, the company stated.

“Our performance this quarter demonstrates the progress we are making towards returning the Company to profitability,” said CEO Theo Killion. “We’ve now achieved top line growth in four consecutive quarters, and our efforts to expand operating margins are gaining traction.”