Zale Earnings Up, Sales Flat in Q2

(IDEX Online News) – Zale improved its profitability in the second quarter even though sales were flat. The American jewelry retailer posted a 1.1 percent increase in sales, totaling $670.8 million.

Zale's profit increased 42.9 percent or by about $12 million to $41.2 million. With nearly flat revenue, a big part in the sharp increase in net earnings is from a decrease in interest expense, down more than $4 million compared to the second quarter of last year.

Comparable store sales increased 2.8 percent. At constant exchange rates, comparable store sales increased 2.2 percent.

Zales branded stores, consisting of Zales Jewelers and Zales Outlet, posted a comparable store sales increase of 3.6 percent. U.S. Fine Jewelry brands including Gordon’s Jewelers posted a comparable store sales increase of 2.8 percent.

“The growth achieved in the quarter was driven by our exclusive, branded collections,” commented Theo Killion, Chief Executive Officer.

For the six months ended January 31, revenues were $1.03 billion, an increase of $13 million compared to the same period last year. Comparable store sales increased 3.2 percent in the first half of 2013.