February 18, 2005
Zale 2nd Quarter Same Store Sales Down 0.6%
Corp., Dallas, TX, North America's largest
specialty retailer of fine jewelry, today
announced net earnings of $99 million, or $1.91
per diluted share, for the company's second
quarter ended Jan. 31, 2005. This represents an
increase of 4.4% on a per share basis over the
Total revenues for the second quarter ended
January 31, 2005 were $972 million, compared to
$949 million for the same period last year, an
increase of 2.5%. Comparable store sales
decreased 0.6% for the same period.
Revenues for the year-to-date totaled $1.395
billion, compared to $1.366 billion for the same
period last year, an increase of 2.2%. On a
comparable store basis, year-to-date sales
decreased 0.7%. Year-to-date net earnings totaled
$88 million or $1.69 per diluted share. This
represents a 3.7% increase on a per share basis
for the year-to-date over last year.
"By maintaining tight disciplines in the
business, we kept our inventory and expense
structure in line with our plan," says Mary L.
Forté, president and chief executive officer.
"This minimized the impact of our revenue
shortfall to plan and allowed us to deliver
earnings per share growth over the prior year.
"We feel good about the strategy we have in
place. We are focusing at the Zales brand on
implementing direct product sourcing, refining
the merchandise mix and improving store
productivity," added Forté.
"The remaining brands all had positive comparable
store sales increases for the quarter and are
showing improvement from a number of our
corporate initiatives. The early completion of
our $50 million stock repurchase program
signifies the confidence we have in our ability
to continue executing the game plan as we enter
the back half of our fiscal year."