Zale Corporation (NYSE: ZLC) today announced its financial results for the third quarter ended April 30, 2012. Revenues for the quarter ended April 30, 2012 were $445 million, an increase of $33 million, or 8.1%, compared to $412 million in the same period last year. Revenues in the third quarter of fiscal 2012 include $8.5 million resulting from the previously disclosed change in warranty revenue recognition.
Comparable store sales, which are based on year-over-year merchandise sales, increased 8.0% during the quarter ended April 30, 2012. This increase follows a 15.2% rise in 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 8.3% for the quarter.
- U.S. Fine Jewelry brands (70% of revenues), consisting of Zales Jewelers, Zales Outlet and Gordon’s Jewelers, had an increase in comparable store sales of 10.9%. This increase follows a 15.9% rise in the same period last year.
- Canadian Fine Jewelry brands (17% of revenues), consisting of Peoples Jewellers and Mappins Jewellers, had an increase in comparable store sales of 3.8%. This increase follows a 21.6% rise in the same period last year. At constant exchange rates, Canadian Fine Jewelry brands comparable store sales increased 6.0% following an increase of 15.0% in the prior year period.
- Kiosk Jewelry (13% of revenues) comparable store sales decreased 1.1%. In the same period last year, Kiosk Jewelry comparable store sales rose 6.7%.
For the quarter ended April 30, 2012, gross margin on sales was $228 million, or 51.3%, an increase of 10.5% compared to $206 million, or 50.1%, in the same period last year. Selling, general and administrative expenses were $213 million, or 47.9% of revenues, in the quarter ended April 30, 2012, compared to $202 million, or 49.1% of revenues, in the same period last year. Operating earnings for the quarter were $6 million, or 1.4% of revenues, compared to an operating loss of $5 million, or negative 1.3% of revenues, in the prior year quarter.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV