Advanced Search

Zale Narrows 4Q Loss to $8M, Improves Margin and Lowers Debt

Aug 28, 2013 7:46 AM   By Jeff Miller
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share

RAPAPORT... Zale Corporation reported that its revenue improved 2.5 percent year on year to $417.1 million for the fourth fiscal quarter that ended on July 31. Same-store sales, which included online sales, rose 5.6 percent with Zales brand stores up by 8.1 percent.  Furthermore, Zale reduced its cost of sales slightly, by 0.8 percent, which improved its gross margin to 53.1 percent compared with 51.6 percent one year earlier. Interest expenses totaled $6 million, compared with $15 million in the fourth quarter of fiscal 2012. Zale's loss in the fourth quarter improved to $7.98 million, or 25 cents per share, compared with a loss of $19.75 million, or 61 cents per share, one year ago.revenue, zales, profit

During Zale's fiscal 2013, revenue improved 1.1 percent year on year to $1.89 billion as same-store sales rose 3.3 percent  and cost of sales were kept in check at $903.6 million. Interest expenses fell to $23 million compared with $45 million one year earlier. Gross margin improved to 52.1 percent compared with 51.5 percent in 2012. Zale recorded a profit of $10 million, or 31 cents per share, compared with a loss of $27.3 million, or 85 cents per share, in fiscal year 2012.

Inventory levels for Zale rose 3.5 percent to  $768 million and outstanding debt fell 9.5 percent to $410 million as of July 31.

“We are pleased to report another solid quarter with a 5.6 percent comp and significant improvement to margins. Importantly, for the year we achieved a significant milestone by delivering our highest net income in six years,” according to Zale's CEO, Theo Killion. “We intend to build on this momentum as we focus on driving profitable top-line growth and long-term shareholder value.”

Tags: costs, earnings, fiscal year, Jeff Miller, loss, profit, quarter, revenue, shares, Zale, zales
Similar Articles
Indian jewelryDiamond Organizations Launch Banking Platform
May 13, 2018
Two leading industry organizations launched a digital know-your-customer (KYC) platform at a major banking summit in Mumbai on Friday.
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2018 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.