Zale Increases Stock Repurchase Program
March 13, 08
Zale announced Wednesday that it is increasing its stock repurchase program by $100 million. The program is in addition to the $200 million repurchase decided on in November 2007. The company expects to retire approximately 11 million shares in total once the $200 million repurchase is complete. Currently, approximately $60 million is available under the previous authorization by the board of directors. Zale said it expects to execute the new program through open market purchases, including through 10b5-1 plans and other means. “As we have stated, the company is committed to the generation of free cash flow through operational efficiencies, refinements in capital expenditures and a reduction in inventory levels," said Rodney Carter, executive vice president, chief administrative officer and CFO. “This additional authorization underscores Zale's commitment to prudent uses of capital and is another step designed to generate value for shareholders over the long term,” he added.