Zale Corp Fiscal Q1 Loss Widens to $11 Million

Zale Corp. said today (Tuesday) its quarterly loss widened as business took a battering in the autumn from the hurricanes that hit the southeast of the United States and Puerto Rico.

The company's loss for the fiscal first quarter ended October 31 was $10.9 million compared with a loss of $9.2 million in the corresponding quarter last year.

Total revenues for the quarter ended October 31, 2004 were $423 million compared to $417 million last year, an increase of 1.4 percent. Comparable store sales for the first quarter decreased 0.9 percent.

"We were satisfied with the performance of the business, especially in light of the recent hurricanes which adversely affected our results earlier in the quarter," commented Mary L. Forte, President and Chief Executive Officer. "Operating disciplines remain firmly in place and we are confident in our preparation for this holiday season."

Zale Corporation is North America's largest specialty retailer of fine jewelry operating approximately 2,315 retail locations throughout the United States, Canada and Puerto Rico, as well as online. Zale Corporation's brands include Zales Jewelers, Zales Fine Jewelry Outlet, Gordon's Jewelers, Bailey Banks & Biddle Fine Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda.