Shares of jewelry retailer
were falling after the company posted a wider first-quarter loss Tuesday, the result of an accounting change, the cost of a buyback and some asset writedowns.
Recently, shares were down $1.49, or 2.7%, at $53.11 in morning trading.
Te company lost $9.2 million, or 34 cents a share, in the quarter ended Oct. 31, compared with a loss of $6.7 million, or 20 cents a share, in the year-ago period.
Zale said results were hurt by 7 cents a share due to a new accounting rule governing advertising. In addition, the company said the quarter was negatively impacted by 6 cents a share from share repurchases made during the past year and 3 cents a share from the writedown of the office and distribution space previously used by Piercing Pagoda.
Analysts were expecting a loss of 35 cents a share in the quarter.
The Dallas-based company had an operating loss of $12.3 million, compared with $8.8 million a year ago. Revenue was $417 million, up from $412 million a year ago, and same-store sales rose 1.6%.