Zale Corporation (ZLC) yesterday announced its financial results for the third quarter ended April 30, 2012, having posted Operating Earnings Growth to $6 million, while net loss reduced 2.5 times.
Revenues for the quarter ended April 30, 2012 amounted to $445 million, an increase of $33 million, or 8.1%, compared to $412 million in the same period last year.
Comparable store sales, which are based on year-over-year merchandise sales, increased 8% during the quarter ended April 30, 2012.
U.S. Fine Jewelry brands, accounting for 70% of Zale’s revenues, consisting of Zales Jewelers, Zales Outlet and Gordon's Jewelers, had an increase in comparable store sales of 10.9%.
Meanwhile, Canadian Fine Jewelry brands which contribute 17% of the company’s revenues, consisting of Peoples Jewellers and Mappins Jewellers, posted an increase in comparable store sales by 3.8%.
Operating earnings for the quarter were $6 million, or 1.4% of revenues, compared to an operating loss of $5 million, or negative 1.3% of revenues, in the prior year quarter.
"The six consecutive quarters of positive comps, coupled with continued momentum through the Mother's Day selling period, demonstrates that the strategic initiatives we've undertaken are resonating with our guests," commented Theo Killion, Chief Executive Officer. "In addition, the improvement in operating earnings this quarter is another indication of the progress we are making as we accelerate towards bottom line profitability.
"Net loss from continuing operations for the quarter ended April 30, 2012 was $4 million, or $0.14 per share, compared to a net loss from continuing operations of $10 million, or $0.31 per share, in the comparable quarter last year," – the company said in the statement.
Olga Patseva, Editor in Chief of the American Bureau, Rough&Polished
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