This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Gift Cards to Avoid for Holiday Shopping

Zales (ZLC)
Tiffany and Co. (TIF) weathered the recession by beefing up its downmarket options and Signet (SIG) cut margins so "he" could still go to Jared and every kiss could begin with Kay. Zales? Not so much.

Zales sales for fiscal 2011 were up by $125 million over past year, while comparable store sales were up 8.1%, That's a dramatic improvement from last year's 6.6% downtick same-store sales, but not even its Jessica Simpson diamond jewelry line could prevent it from adding nearly $20 million to its net loss during the same period. About the best thing Chief Executive Theo Killion could say about it was "we made substantial progress in the multiyear initiative to return to profitability."

Unfortunately, that progress involved trimming nearly 300 stores from its stable within the last three years Within the past six, its stock price has plunged 88%, from $24 a share to less than $3.50. Meanwhile, upstart online-only competitor Blue Nile (NILE) has eaten up market share and quadrupled Zales' market cap.

In retail's cluttered jewelry box, Zales has made it increasingly obvious that it's the odd piece. The mall jeweler seems content to sell its wares as if its buyers are still wearing Z. Cavaricci pants and B.U.M. Equipment shirts and has missed out on the success its competing jewelers are experiencing beyond the food court.

If Zales can't turn it around, its holiday gift cards will have about as much value as Chess King and Suncoast Video gift certificates.

4 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs