Zale Christmas Sales Down, But Revenues Up

Zale today (Thursday) reported that comparable store sales edged down 0.7 percent for the vital Christmas season of November and December compared with the same period of 2003, while total revenues for the period rose 2.1 percent to $861 million compared to $843 million.

Zale is expecting comparable store sales to be flat to down 1 percent for its second quarter, ending January 31.

Based on current sales trends, it expects diluted earnings per share for the second quarter ending January 31, to range between $1.88 and $1.91, compared to $1.83 in the same period last year.

“While we are disappointed with our overall holiday sales results, they are not reflective of the performance at most of our brands," commented Mary L. Forte, President and CEO.

“Our largest brand, Zales Jewelers, under performed and thus had a significant impact on our consolidated results. Our remaining brands all had positive comparable store sale increases and performed at or close to our original guidance expectations for the quarter."