Financials

Zale records 12th quarter of positive comps

FinancialsNov 25, 2013

Zale records 12th quarter of positive comps

Same-store sales grew in Zale Corp.’s fiscal first quarter, driven by strong sales at the company’s Zales- and Peoples-branded stores and of both bridal and core fashion jewelry.

Dallas--Same-store sales grew in Zale Corp.’s fiscal first quarter, driven by strong sales at the company’s Zales- and Peoples-branded stores and of both bridal and core fashion jewelry.

In the quarter, ended Oct. 31, same-store sales increased 4 percent (5 percent at constant exchange rates) year-over-year. Total sales grew 1 percent from $357.5 million to $362.6 million.

The company’s U.S. fine jewelry brands, Zales Jewelers, Zales Outlet and Gordon’s Jewelers, saw same-store sales increase 6 percent while comps at the company’s Canadian stores, Peoples Jewellers and Mappins Jewellers, were up 2 percent (7 percent at constant exchange rates).

Same-store sales for the Piercing Pagoda declined 2 percent, impacted by a drop-off in mall traffic (all same-store sales figures include associated e-commerce businesses).

Net loss was down slightly, from $28.3 million in the first quarter of fiscal 2013 to $27.3 million in the first quarter of fiscal 2014.

Gross margin was essentially flat at 53.4 percent, compared with 52.4 percent in the prior-year period.

Like Sterling and Tiffany, Zale reported that color was a strong seller during the quarter. During the company’s earnings call Tuesday evening, CEO Theo Killion said the retailer’s Candy Colored Diamonds and Gemstones collection has “resonated with our guests” and that the company is adding new hues for the holiday season.

In addition, Killion mentioned the Celebration Fire diamond, the stone that sparked a lawsuit with rival Sterling Jewelers Inc.

Sterling sued Zale in November 2012 claiming that the retailer’s statement that the Celebration Fire was “the most brilliant in the world” constituted false advertising. The two chains settled the lawsuit in September.

Though the terms of the settlement were never disclosed, Killion referenced the Celebration Fire only as having “extraordinary luminance” during the call, and the diamond’s superlative brilliance is not mentioned on the company’s website page for the Celebration Fire.

As the company’s launches it holiday marketing campaign, Killion said it is focusing on marketing to the millennial generation, nabbing musical acts such as The Black Keys, Various Cruelties, Lord Huron and Florence and the Machine to provide the soundtrack for its commercials. These are “artists you may never have heard of” but the millennials have, he told analysts on the call.

“The response to the music and the spots has been terrific,” Killion said.

He also mentioned Zale’s social media efforts, which include Facebook, Instagram, YouTube and Twitter. “We believe

the guest is playing the game differently so we have to provide them with new opportunities to interact with our brand,” he said.

Zale closed seven stores and five kiosks in the first quarter. Five of the seven stores closed were regional brand stores in malls where there already is a successful Peoples or Zales store, the company said, and it expects closures of regional brand and Piercing Pagoda kiosks to continue.

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Future Fortune sapphire ring
TechnologyMar 28, 2024
Pinterest’s 2024 Wedding Report Is Out

The report shows that couples are searching for vintage and antique rings, gold jewelry, pearls, and colorful pieces.

David Ettinger
IndependentsMar 28, 2024
David Ettinger of Bechdel Jewelers Dies at 69

He’s remembered as a “font of passion,” leaving behind a legacy of dedication to his craft and community.

Jewelers of America logo
IndependentsMar 28, 2024
JA to Host Series of Learning Workshops

The first one will take place next month during the Jewelers of Louisiana’s and Mississippi Jewelers Association’s conventions.

Jewelers of America Fly In Washington, D.C.
Brought to you by
How Jewelers of America Represents Your Business

For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.

Jaeger-LeCoultre Madison Avenue NYC store
WatchesMar 28, 2024
Peek Inside Jaeger-LeCoultre’s Revamped NYC Flagship

The redesigned boutique features interactive displays and a workshop space for hands-on learning about watchmaking.

Weekly QuizMar 28, 2024
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
Asian Star’s diamond manufacturing facility in India
SourcingMar 27, 2024
Compliance, Caution, and Concern: The Current Outlook of Indian Diamantaires

There is a willingness to comply with new government-mandated regulations, with an insistence that they should be practical and realistic.

Kira Diam solar plant
Lab-GrownMar 27, 2024
Indian Lab-Grown Diamond Manufacturers Keep Growing

A combination of factors is driving growth in the industry despite the precipitous drop in prices across the board.

BTYB-HoBrothers-updated.png
Brought to you by
The Scalable, Professional, and Effortless Solution for High-Demand Custom Jewelry Retailers

Ho Brothers offers scalable solutions for the future of custom jewelry.

Bharat Ratnam, a Mega Common Facilitation Centre (CFC)
SourcingMar 27, 2024
Reinvigorating SEEPZ, the Epicenter of India’s Studded Jewelry Exports

The zone’s modernization will enhance and increase India’s jewelry manufacturing capabilities while aiding small and mid-sized businesses.

SRK Empire and SRK House
Policies & IssuesMar 27, 2024
SRK Exports’ Journey Toward Net Zero Impact

By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.

Hand holding shopping bags
SurveysMar 27, 2024
Consumer Confidence Held Steady in March

Optimism about the current state of the economy was offset by anxiety around inflation and the political environment.

Bernadette Mack
Policies & IssuesMar 27, 2024
Mercury Free Mining Hires Bernadette Mack

The former WJA executive director is MFM’s new managing director.

April Is Diamonds Do Good Month
Policies & IssuesMar 27, 2024
Diamonds Do Good Announces Its April Initiative

DDG encourages retailers to educate customers on the positive impact of purchasing natural diamonds.

Tiffany & Co. With Love, Since 1837
MajorsMar 26, 2024
Tiffany & Co. Debuts ‘With Love, Since 1837’ Campaign

Highlighting the most iconic Tiffany collections, it’s inspired by the company’s late window designer, Gene Moore.

National Jeweler columnists Duvall O’Steen and Jen Cullen Williams
ColumnistsMar 26, 2024
Creative Connecting: AI Tools and Tips for Social Media

Jen Cullen Williams and Duvall O’Steen explore how jewelers can save time and money by using AI to analyze engagement and create content.

Nordstrom Men’s Store New York City
MajorsMar 26, 2024
Nordstrom May Go Private, Says Report

The retailer previously turned down an $8.4 billion offer in 2018.

Interior of Miami Lakes Jewelers
IndependentsMar 26, 2024
Miami Lakes Jewelers to Close After 37 Years

The Florida store’s owner Miguel Gonzalez is retiring.

 International Gemological Institute
GradingMar 26, 2024
IGI Announces Tech for ID’ing Lab-Grown Colored Diamonds

The lab stresses the importance of accurate identification, as the difference in price is “substantial.”

Kendra Scott lab-grown diamond jewelry
CollectionsMar 25, 2024
Kendra Scott Debuts Lab-Grown Diamond Fashion Jewelry

The brand also plans to expand its retail footprint from 138 to 200 stores over the next three years.

Instappraise logo NAJA logo
Events & AwardsMar 25, 2024
NAJA, Instappraise Offering Scholarships for Aspiring Jewelry Appraisers

One is reserved for a NAJA member, the other for a non-member.

Carie Lehrke and Megan Mattice
MajorsMar 25, 2024
Borsheims Announces New VP of HR, Assistant Manager

Longtime employees Carie Lehrke and Megan Mattice have received promotions.

My Next Question graphic vintage jewelry webinar
Recorded WebinarsMar 22, 2024
Watch: How to Buy and Sell Vintage Jewelry

Three guests joined National Jeweler and Jewelers of America to discuss trending time periods, spotting reproductions, and more.

Chris Clipper and Robert Lepere
MajorsMar 22, 2024
David Yurman Announces New CFO, Chief People Officer

Chris Clipper and Robert Lepere join the company with 50 years of combined experience.

Nakard pyrite earrings
CollectionsMar 22, 2024
Piece of the Week: Nakard’s Pyrite Earrings

The trendy, metallic earrings wink at classic spring colors.

Stock image of police cars with their lights on
CrimeMar 21, 2024
Sparks Fly as Burglars Lose Safe on California Freeway

JSA said a man and woman pulled the safe out of an Oakland jewelry store but couldn’t quite get it into their van.

Grizzly Mining rough emeralds
SourcingMar 21, 2024
Grizzly Sells 4,145-Carat Emerald for Over $1M

The miner’s March auction generated $19 million.

Helen McCluskey
MajorsMar 21, 2024
Signet Jewelers Names New Board Chair

Helen McCluskey will succeed H. Todd Stitzer when he meets his 12-year term limit in June.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy