Join        Login             Stock Quote

Zale (ZLC) Holiday Sales Rise, Backs 2013 Profit View

 January 10, 2013 07:53 AM

(By Balachander) Zale Corp. (NYSE: ZLC) said holiday sales rose 2.3 percent and the jewelry retailer still forecasts positive net income for fiscal 2013.

At constant exchange rates, the company said comparable store sales grew 1.6 percent for the holiday selling period, versus a rise of 6.2 percent in the same period last year.

Revenue for the combined months of November and December rose $3 million to $567 million, with revenue related to the net decrease of 50 stores offsetting comps growth. 

Zales branded stores comps grew 3.1 percent and Canadian Fine Jewelry brands posted comps gain of 2.7 percent.

[Related -Zale Corporation (ZLC): Options Active As Shares Pop After Earnings]

Zale's Kiosk Jewelry business Piercing Pagoda registered comps growth of 1.7 percent.

For the second quarter ending Jan. 31, the company forecasts gross margin to be in line with 50.5 percent posted a year ago and operating margin to improve 100 basis points to 7.5 percent.

"This holiday season, we focused on driving bottom line improvement," said Zale CEO Theo Killion. "Our comp performance, combined with an expected 100 basis point operating margin improvement, brings us closer to our goal of achieving positive net income for the fiscal year."

Earlier today, bigger peer Tiffany & Co. (NYSE: TIF) forecast full-year profit at the lower-end of its guidance, saying holiday period sales growth was at the low-end of its expectations. For the two-month period ended December, the jeweler said worldwide net sales grew 4 percent to $992 million. Comparable store sales were unchanged from the prior-year period on a constant-exchange-rate basis.

[Related -Lennar Corporation (LEN): Traders Construct Call Spreads On Lennar]

The stock, which has been trading in the 52-week range of $2.18 to $7.66, closed at $4.19 on Wednesday.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.