Zale Corporation, the largest specialty retailer of fine jewelry in North America, reported net earnings of $16.8 million, or $0.35 per diluted share, for the third quarter ended April 30th 2006.
This includes, on an after-tax basis, (1) a benefit of $8.4 million resulting from the settlement of certain retirement benefit obligations partially offset by (2) a charge for COO severance of $2.2 million and (3) a charge of $0.9 million related to the closing of certain Bailey Banks & Biddle locations.
Total revenues for the third quarter increased by 2.2 percent to $526.9 million from last year's $515.6 million. Last year's total revenues included $10.6 million from certain Bailey Banks & Biddle stores which were closed in this year's second fiscal quarter. Excluding these stores, total revenues increased 4.3 percent over last year's $505 million. Third quarter comparable store sales increased 2.5 percent.
Year-to-date total revenues increased 2.0 percent to $1.948 billion, from $1.911 billion for the comparable period last year. Year-to-date comparable store sales, which do not include the Bailey Banks & Biddle store closures, increased 1.1 percent.
Year-to-date net earnings totaled $81.0 million. This includes, on an after-tax basis, (1) a $21.4 million charge related to the closing of certain Bailey Banks & Biddle locations and (2) a charge for CEO and COO severance of $7.6 million, this was partially offset by (3) a tax benefit of $11.5million related to income repatriated from Canada under the American Jobs Creation Act and (4) an $8.4 million benefit resulting from the settlement of certain retirement benefit obligations.
marketing@alchempro.com
