This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Zale Corporation Reports First Quarter Fiscal 2012 Results

Stocks in this article: ZLC

Zale Corporation (NYSE: ZLC) today announced its financial results for the first quarter ended October 31, 2011.

Fiscal First Quarter 2012 Results

Revenues for the quarter ended October 31, 2011 were $351 million, an increase of $24 million, or 7.3%, compared to $327 million in the same period last year. Comparable store sales, which are based on year-over-year merchandise sales, increased 5.8% during the quarter ended October 31, 2011, compared to a decrease of 1.1% during the same period last year. At constant exchange rates, which exclude the effect of translating Canadian currency denominated sales into U.S. dollars, comparable store sales increased 5.2% for the quarter.

For the quarter ended October 31, 2011, gross margin was $188 million, an increase of 13.7% compared to $165 million in the same period last year. The Company achieved gross margin of 53.5%, compared to 50.5% in the comparable quarter last year. The 300 basis point improvement was achieved through a combination of price increases and lower levels of merchandise discounts, partially offset by the impact of rising commodity costs. Gross margin was also impacted by an 85 basis point increase from the change in warranty revenue recognition.

Selling, general and administrative expenses were $200 million, or 56.9% of revenues, in the quarter ended October 31, 2011, compared to $195 million, or 59.7% of revenues, in the same period last year. The improvement as a percent of revenues reflects greater operating leverage of store and corporate expenses. The Company’s operating loss for the quarter was $22 million compared to an operating loss of $42 million in the prior year quarter. Operating margin improved 640 basis points, to negative 6.4%, for the quarter ended October 31, 2011, compared to negative 12.8% in the same period last year. The 640 basis point increase was primarily driven by gross margin improvement and greater operating leverage.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,191.37 -195.84 -1.13%
S&P 500 2,002.16 -27.39 -1.35%
NASDAQ 4,637.9940 -43.5030 -0.93%

Partners Compare Online Brokers

Free Reports

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