Zales returns to full-year profitability
Dallas -- Zale Corp. narrowed its net loss in the fourth quarter to $8 million, from $19.7 million a year ago. Despite the loss, the retailer reported its first profitable fiscal year since the financial crisis in 2008.
“We are pleased to report another solid quarter with a 5.6 percent comp and significant improvement to margins,” said Zales CEO Theo Killion.” 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.”
Revenue for the quarter ended July 31, rose 2.5% to $417.1 million. Same-store sales increased 5.6%, including an 8.1% increase at its namesake division. Both the quarterly net loss and revenue gain beat Wall Street expectations
For the full year, revenues were $1.89 billion compared to $1.87 billion in fiscal year 2012. Same-store store sales increased 3.3%. Net earnings were $10 million, compared to a net loss of $27 million, in fiscal year 2012.