Zale Quarterly Financial Woes Continue

Zale quarterly losses net  $9.2 million, up from $6.7 million during the same period last year and after closing the last fiscal year with a $40.6 million net loss.

The company points at a number of reasons for these results: the application of EITF Issue No. 02-16 regarding the accounting for cooperative advertising programs, from a significant volume of share repurchases made during the past year and from the write-down of the office and distribution space previously used by Piercing Pagoda, accounting together close to half of the loss.

The jewelry retailer did increase total revenue by a modest 1.2 percent to $417 million compared to $412 million last year. Comparable store sales for the quarter increased 1.6 percent.

“We are pleased with these earnings results which reflect our disciplined strategies and consistent approach in executing the business,” says Mary L. Forte, Zale’s President and CEO. “With the first quarter complete, our focus now turns to the execution of the Holiday season. We believe our merchandise and marketing efforts have been appropriately targeted throughout each of our brands to drive demand and meet the needs of our gift giving customers.”