Zale Losses Shrink, Expects to Return to Profitability Next Year

(IDEX Online News) – Zale's revenues increased 7.1 percent to $1.87 billion in the 2012 fiscal year, the company announced. The improved results were not enough to pull the company into profit, posting a $27 million loss.

The loss Zale posts at the end of the fiscal year ended July 31 is a much reduced loss compared to 2011, when it lost $112 million.

Comparable store sales increased 6.9 percent.

"We recorded our seventh consecutive quarter of positive comps, reported a sizeable improvement in operating margin and strengthened our capital structure," said CEO Theo Killion.

For the fourth quarter, Zale reported revenues were $407 million, an increase of 7.9 percent year-over-year. Comparable store sales increased 8.3 percent.

Net loss was $20 million in the quarter.

In its 2013 outlook, Zale states that based on the "current momentum of the business and the recent debt refinancing," the company expects to post a profit in fiscal 2013.