Zale Corporation Fourth Quarter Profits Up Strongly

Zale Corp, North America's largest specialty retailer of fine jewelry, reported today (Tuesday) a strong increase in net earnings for the fourth quarter ended July 31, meeting analysts’ expectations.

Zale posted net earnings of $6.9 million compared with $2.9 million in the same period last year following a special charge for redeeming debt.

Net earnings for fiscal year 2004 were $106.5 million compared with $99.4 million in the previous fiscal year.

For the fiscal year, total revenues increased 4.2 percent to $2.3 billion, compared to $2.2 billion for the previous fiscal year. On a comparable store basis, sales increased 3.9 percent for the year.

“We remain confident in the underlying strength of our business as we execute our strategic plan,” said Mary L. Forte, President and Chief Executive Officer. “Our brand management strategy has further differentiated each brand to capture its segment of the market.

“Additionally, the recent investments we have made are yielding long-term benefits, including the roll-out of our direct sourcing efforts, the further building of our database marketing capabilities and the development of our off-mall real estate portfolio."

For its fiscal year ending July 2005, Zale said it expects revenue growth of 5-7 percent including a comparable store sales increase of 2-3 percent. The company plans to open 85 stores and 50 kiosks during the year.