fiscal second-quarter earnings topped estimates, as the jeweler reversed a year-earlier loss.
Zale shares were recently up 83 cents, or 1.5%, to $57.78.
Monday morning, the company reported net income of $97.30 million, or $3.66 a share, in the quarter ended Jan. 31. That compared favorably with a loss of $46.22 million, or $1.44 a share in its second quarter a year ago.
A $136.3 million pretax goodwill charge weighed down Zale's bottom line in the year-ago quarter. Without that charge, the company would have earned $90 million, or $2.80 a share.
Sales at the company rose 4.5% year-over-year to $949.02 million.
Analysts surveyed by
MultexNet service were expecting Zale to earn $3.61 a share in the second quarter on sales of $945.87 million.
In its third quarter, Zale expects to earn 36 cents to 39 cents a share on a 3% to 4% gain in same-store sales. (Same-store sales compare results at like outlets open more than one year.) Wall Street had forecast the company would earn 29 cents a share in the current quarter on sales of $464.88 million, which would represent a 3.4% overall increase vs. the prior year.