Wednesday, January 12, 2011

“Zales says key revenue figure jumped over holidays”

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“Zales says key revenue figure jumped over holidays”

Zales says key revenue figure jumped over holidays

Posted: 11 Jan 2011 02:53 PM PST

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On Tuesday January 11, 2011, 5:53 pm EST

DALLAS (AP) -- Jewelry retailer Zale Corp. reported Tuesday that revenue at its stores open at least a year rose 8.5 percent over the important holiday shopping season, marking a turnaround for the chain operator which was hit hard by the recession.

Retailers have said the 2010 holiday season was their best since 2006, as shoppers felt more confident about spending on gifts for themselves as well as others. The higher sales included a return to splurge items like jewelry. Earlier Tuesday, high-end jeweler Tiffany & Co. raised its outlook for the year because of better-than-expected holiday sales, and noted particular strength in more expensive fine jewelry and diamond rings.

Zale CEO Theo Kilion said the results represent progress as the company continues to stabilize its business and return to profitability. Zale's revenue tumbled during the recession, hurt by tighter credit and high unemployment. It has closed hundreds of stores over the past two years and shuffled top management.

Revenue at established stores rose 11.5 percent in November and 7.4 percent in December. This is considered a key measure of a retailer's financial performance as it strips away the impact of recently opened and closed stores.

Zale's total revenue for the two-month period rose 8 percent to $533.1 million from $493.7 million at the same time last year.

The news sent shares of Zale up 23 cents, or nearly 6 percent, to $4.26 in after-hours trading. In addition to its namesake stores, Zale operates the Gordon's Jewelers chain in the U.S. and the Peoples Jewellers and Mappins Jewellers chains in Canada.

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