Zale Revises Quarterly Forecast Due to Severe Weather

U.S. fine jewelry retailer Zale Corp has revised downwards its sales and earnings forecast for the first quarter ending October 31 due to the impact of severe weather in the south of the country.

Zale said it expects comparable store sales to be flat to -1.0 percent for its first quarter and that diluted earnings per share for the first quarter will range between a net loss of $0.20 and $0.22.

The company cited the severe weather conditions in Florida, the Southeastern United States and Puerto Rico for the downward revision of estimates.

Approximately 325 locations have been impacted by the recent hurricanes, resulting in estimated lost revenues of $6.5 million, Zale said.

The company does not expect the effects of these severe weather conditions to impact its previously issued guidance for the second, third and fourth quarters of its current fiscal year.