Zale Posts Larger Fiscal 4Q Loss Partly On Charges

DALLAS (AP) — Zale Corp. reported a significantly larger fiscal fourth-quarter loss on Friday, weighed down by hefty charges for closing stores and other items, and by a decline in sales at stores open at least a year.

The jewelry chain lost $89.8 million, or $2.81 per share, for the three months ended July 31. That compares with a loss of $10 million, or 30 cents per share a year earlier.

Quarterly results included special charges of $70.8 million, or $2.22 per share related to store closings and other items. Removing those items, Zale's quarterly loss was 48 cents per share.

The prior-year period benefited from special gains of $11 million, or 33 cents per share.

Revenue dropped 22 percent to $357.1 million from $456.2 million, with sales at stores open at least a year down 21.2 percent.

Sales at stores open at least a year are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.