Zale Falls on Wider-Than-Expected First-Quarter Loss
Zale Corp. (ZLC), the operator of the Zales and Piercing Pagoda jewelry chains, fell the most in almost four years after reporting a fiscal first-quarter loss that was wider than analysts estimated.
Zale said in a statement yesterday that its loss in the three months ended Oct. 31 narrowed to $28.3 million, or 88 cents a share, from $31.9 million, or 99 cents, a year earlier. Analysts surveyed by Bloomberg had estimated a 68-cent loss. Sales rose 1.8 percent to $357.5 million, trailing analysts’ average estimate of $366 million.
Zale, based in Irving, Texas, has posted five straight years of losses. The company yesterday reiterated that it expects to be profitable in its current fiscal year.
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