Zale loss widens on higher costs but beats Street; adds credit options
Dallas -- Zale Corp. reported Wednesday that its loss for the quarter ended July 31 widened to $32.6 million from $28.5 million a year earlier. Its results were impacted by increased inventory charges and absent a one-time gain recorded a year ago.
Revenue rose 9% to $377.3 million, compared with $345 million in the year-ago period. Wall Street expected higher losses on revenue of $360.4 million.
Same-store sales increased 9.8% in the quarter.
For the full year, Zale lost $112.3 million, compared with a loss of $93.7 million in fiscal 2010. Annual revenue rose 8% to $1.75 billion.
The company also announced it is launching a program for alternative financing options for U.S. customers, offering credit through Monterey Financial Services when credit applications are declined by primary provider Citibank.