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RAPAPORT... Zale Corporation's revenue slid 2.1 percent year on year to $656.4 million for the second fiscal quarter that included Christmas and ended on January 31. Same-store sales were basically flat in terms of dollar denomination, but improved 1.9 percent at constant-exchange rates. Zale reduced its cost of sales 6.7 percent to $308.8 million and gross margin improved to 53 percent from 50.6 percent one year ago. Profit jumped 23.3 percent to $50.8 million. By brand, comparable-store sales rose 3.9 percent for Zales and Zales Outlets. However, same-store sales contracted 4.5 percent at Gordon's, 4.3 percent at Peoples, 11.4 percent at Mappins and they fell 4.6 percent at Piercing Pagoda. Zale's revenue fell 0.9 percent year on year to $1.02 billion for the jeweler's first half, gross margin improved to 53.1 percent compared with 51.5 percent in 2013, and profit rose to $23.5 million from $12.9 million one year ago. On February 19, Signet Jewelers Limited and Zale entered into a definitive agreement for Signet to acquire all of the issued and outstanding stock of Zale for $21 per share in cash consideration. The transaction is subject to Zale stockholder and regulatory approvals and it is anticipated that the deal will close by the end of the year.
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