Zale Spikes on Sale of New York Leases
NEW YORK (
--
Zale
(ZLC)
is spiking after reports surfaced earlier this week that the jeweler will sell the lease on up to 12 New York stores.
Zale is looking to sell leases in high-traffic locations like Herald Square and Fifth Avenue. It will also shed stores in Brooklyn, Bronx and Queens.
It was not clear whether Zale was solely trying to reduce some of its lease obligations or whether the jeweler would consider leaving some of these store locations,
Reuters
reported on Thursday.
The move comes as Zale grapples with struggling sales and reports that
Apollo Management
is looking into purchasing a stake of the company.
Still, the jeweler reported better-than-expected fourth-quarter earnings last week, receiving a boost from a tax benefit.
Shares of Zale are surging 13.2% to $2.75 in afternoon trading.
-- Reported by Jeanine Poggi in New York.