Diamonds are not a girl's best friend, at least not during a recession.
Indeed, investors' hopes for a turnaround in the jewelry sector were dashed on Wednesday, as
posted a larger-than-expected loss in the third quarter.
The news sent shares in the company tumbling 19% to $4.05 in morning trading.
During the quarter, Zale's loss widened to $23.2 million, or 73 cents per share, missing analysts' expectations of a 46 cent loss.
Investors had been
banking on the hope of a Zale turnaround, after rival
, said its Kay Jewelers division improved in the quarter.
Sales fell 20.5% to $379.1 million, while same-store sales tanked 20%.
Separately, Zale named Matthew Appel as its chief financial officer to replace Rodney Carter, who left in January. Appel, it is safe to say, has his work cut out for him.
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