Zale Announces Flat First Quarter Sales Results

Zale Corporation has reported that for the first quarter ended October 31, 2006, comparable store sales increased 0.4 percent.  Total revenues for the first quarter were $432 million compared to last year's total revenues of $428 million, an increase of 0.9 percent.

The company, North America's largest specialty retailer of fine jewelry, added that the small gain in revenues was affected by the closure of Bailey Banks & Biddle stores in the second quarter of the previous fiscal year.  Last year's total revenues included the closed stores results, accounted for $9 million of the company's revenues.  Excluding these store closures, total revenues increased 3.1 percent over last year's $419 million.

Comparable store sales were at the low end of guidance, primarily due to increased clearance at the Zales brand, the company reported.  While the number of transactions increased, this was offset by a lower average ticket price.

According Zale CEO Betsy Burton, “Our performance was consistent with our plan to move through as much non-program merchandise as possible in the first quarter to make way for fresh assortments and the selling of regular-priced goods in the all-important Holiday season.”

Zale will announce its first quarter fiscal 2007 earnings results later this month.