ZALE’S SECOND-QUARTER PROFITS UP 11.3%, SIX-MONTH RESULTS SHOW 22.9% GAIN
DALLAS — In line with the generally robust sales reported by fine jewelry chains during the key holiday season, profits at Zale Corp. rose 11.3 percent in the second quarter on a 15.9 percent rise in sales.
In the quarter ended Jan. 31, earnings came to $41.8 million, or $1.19 a share, from $37.5 million, or $1.07, a year ago. Sales grew to $427.2 million from $368.6 million.
In the six months, earnings climbed 22.9 percent to $38.6 million, or $1.10, from $31.4 million, or 90 cents, a year ago. Sales advanced 14.3 percent to $632.7 million from $553.3 million.
Interest expense increased by $1 million in the second quarter and by $2.4 million in the six months, due to the refinancing of the company’s private label credit card receivable facility in July 1994. The retailer said that outstandings under this facility increased by $96 million. Zale noted that it will add $60 million of these funds to its regular capital expenditures in a three-year store remodeling and refurbishment program, which will cover 80 percent of its stores.
As of Jan. 31, Zale Corp. operated 1,205 retail jewelry stores and leased departments in the U.S., Puerto Rico and Guam, including Zales Jewelers, Gordon’s Jewelers, Bailey Banks & Biddle and Corrigan’s. — Fairchild News Service