Profit climbs but sales are nearly flat at jewelry retailer
\nPosted by the Asbury Park Press on 02\/21\/07
\nAsbury Park Press, NJ
\nTHE ASSOCIATED PRESS<\/p>\n
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\nJewelry retailer Zale Corp., which has three stores in Monmouth and Ocean counties, said today its second-quarter profit edged up, the gain limited by one-time charges and flat revenue.<\/p>\n
Profit for the quarter ended Jan. 31 totaled $88.1 million, or $1.80 per share, compared with $87.8 million, or $1.78 per share, during the same period last year.<\/p>\n
Revenue grew 1 percent to $1 billion from $993.7 billion a year ago, which excludes results of the Bailey Banks & Biddle stores that were closed during the second quarter of 2006.<\/p>\n
Locally, Zale has stores in Eatontown, Freehold Township and Toms River.<\/p>\n
Same-store sales, or sales in stores open at least one year, a key measure of retail performance, grew 1.4 percent during the quarter.<\/p>\n
Excluding charges for adjustments to derivative accounting and a change in how revenue is recognized for jewelry protection plans sold during the quarter, net income totaled $1.94 per share in the latest period, compared with last year’s adjusted profit of $1.96 per share.<\/p>\n
Analysts polled by Thomson Financial expected net income of $1.89 per share on higher revenue of $1.02 billion. The estimates typically exclude one-time items.<\/p>\n
The company said it did not reach original expectations for the quarter but is “pleased” with its first same-store sales increase in three years. Results were helped by expanded offerings in diamond and bridal jewelry categories, Zale said.<\/p>\n
“While we gave back margins due to aggressive pricing and increased promotional activity at holiday, in January we changed our focus to maximizing gross profit dollars,” said CEO Betsy Burton.<\/p>\n
Zale also said the impact of accounting for gold and silver contracts increased profits by $2.5 million, or 5 cents per share, and the company also benefitted from expanding its jewelry protection plan sold to customers to cover the lifetime of the product rather than the two-year period previously covered.<\/p>\n","protected":false},"excerpt":{"rendered":"
Profit climbs but sales are nearly flat at jewelry retailer Posted by the Asbury Park Press on 02\/21\/07 Asbury Park Press, NJ THE ASSOCIATED PRESS Post Comment Jewelry retailer Zale Corp., which has three stores in Monmouth and Ocean counties, said today its second-quarter profit edged up, the gain limited by one-time charges and flat […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[411],"tags":[],"yoast_head":"\n