Zale Corporation, North America's largest specialty retailer of fine jewelry, 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.
Last year's total revenues include the results of the Bailey Banks & Biddle stores that were closed in the second fiscal quarter of 2006, which 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.
While the number of transactions increased, this was offset by a lower average ticket.
President and Chief Executive Officer Betsy Burton commented, “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.”
The Company also noted that it expected results at the low end of its previously announced earnings guidance for the first quarter ending October 31, 2006, excluding the impact of derivative losses under SFAS 133.
Zale Corporation will announce its first quarter fiscal 2007 earnings results on November 16, 2006. A conference call will be held at 9:00 a.m. EST.
marketing@alchempro.com
