Zale Corporation, a leading specialty retailer of fine jewelry in North America reported that for the fourth quarter ended July 31, 2007, comparable store sales decreased 0.5%. Revenues for the fourth quarter were $488 million compared to last year's revenues of $491 million, a decrease of 0.6%.
Revenues recognized were $7.5 million or 1.5% less than the prior year as a result of the change made in the method of amortizing jewelry protection plan sales due to a change in the product offering from a two-year to a lifetime agreement during the second quarter.
While recognized revenue from the plans declined, actual sales of these plans increased to $26.7 million from $16.6 million in the fourth quarter of fiscal 2006. Full fiscal year revenues were flat at $2.44 billion, compared to the same period last year. Full fiscal year comparable store sales decreased 0.2%.
The Company indicated it is comfortable at the more favorable end of its previously issued GAAP earnings per share guidance of ($0.11) to ($0.15) for the fourth quarter.
“Our performance was consistent with plan for the fourth quarter,” commented Betsy Burton, Chief Executive Officer. “We remained focused on maximizing gross margin dollars and maintaining good expense control in a somewhat challenging macro environment. As we start the beginning of a new fiscal year, our focus will be value creation for shareholders and improvement of the fundamentals of our business.”
Zale Corporation will announce its fourth quarter and complete fiscal year 2007 earnings results on August 30, 2007.
marketing@alchempro.com
