Zale Corporation (NYSE: ZLC) today reported its financial results for the fourth quarter and full year ended July 31, 2012.
Theo Killion, Chief Executive Officer commented, “In the fourth quarter, we made significant progress in returning Zale to profitability. We recorded our seventh consecutive quarter of positive comps, reported a sizeable improvement in operating margin and strengthened our capital structure. In fiscal year 2012, we achieved a 6.9 percent comp, on top of an 8.1 percent increase last year, and reported operating earnings for the first time since 2008. We look forward to building on this momentum in 2013.”
Fourth Quarter Fiscal 2012 Results
Revenues were $407 million, an increase of $30 million, or 7.9 percent, compared to $377 million in the fourth quarter of fiscal 2011. Revenues in the fourth quarter of fiscal 2012 include $7.6 million resulting from the previously disclosed change in warranty revenue recognition.For the fourth quarter of fiscal 2012, comparable store sales increased 8.3 percent. This increase follows a 9.8 percent 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 9.2 percent.
- U.S. Fine Jewelry brands, consisting of Zales Jewelers, Zales Outlet and Gordon’s Jewelers, increased comparable store sales 11.2 percent. This increase follows a 9.7 percent rise in the same period last year.
- Canadian Fine Jewelry brands, consisting of Peoples Jewellers and Mappins Jewellers, increased comparable store sales 2.0 percent. This increase follows an 18.1 percent rise in the same period last year. At constant exchange rates, comparable store sales increased 7.1 percent in the fourth quarter of fiscal 2012, following an increase of 9.7 percent in the same period last year.
- Kiosk Jewelry increased comparable store sales 2.7 percent. In the same period last year, comparable store sales rose 1.3 percent.
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