Zale Q4 Loss Narrows, Revenue Tops Estimates

(RTTNews) - Zale Corp. (ZLC), a specialty retailer of diamond and other jewelry products, Wednesday reported a narrower loss for the fourth quarter that was less than analysts' expectations, helped by higher revenues, which topped estimates. The stock was trading up more than 10 percent in the pre-market activity.

Net loss for the quarter narrowed to $7.98 million or $0.25 per share from $19.75 million or $0.61 per share in the previous year. On average, 7 analysts polled by Thomson Reuters expected a loss of $0.33 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues rose to $417.09 million from last year's $406.96 million. Analysts expected revenues of $409.04 million for the quarter.

Comparable-store sales grew 5.6 percent, following an 8.3 percent rise in the same period last year. On a currency-neutral basis, comparable-store sales increased 5.8 percent.

At Zales branded stores, consisting of Zales Jewelers and Zales Outlet, comparable sales were up 8.1 percent after a 12.3 percent rise last year.

Peoples branded stores posted a comparable-store sales increase of 5.6 percent, compared with a 4.7 percent increase last year. The increase was 7.0 percent at constant exchange rates.

For the full year, net earnings were $10 million or $0.24 per share, compared to a net loss of $27 million or $0.85 per share in fiscal year 2012.

Theo Killion, CEO, said, "We are pleased to report another solid quarter with a 5.6 percent comp and significant improvement to margins. Importantly, for the year we achieved a significant milestone by delivering our highest net income in six years. We intend to build on this momentum as we focus on driving profitable top-line growth and long-term shareholder value."

ZLC closed at $8.96 on Tuesday. The stock surged 10.5 percent in pre-market activity.