) posted second-quarter fiscal 2013 earnings of $1.02 per share
that missed the Zacks Consensus Estimate by a couple of cents but
jumped 32.5% year over year reflecting strong sales in exclusive,
This Zacks Rank #3 (Hold) stock, which competes with
Tiffany & Co
Movado Group Inc
), registered a 1.1% increase in total revenue to $671 million,
surpassing the Zacks Consensus Estimate of $666 million.
Comparable-store sales (comps) increased 2.8% during the reported
Zale's branded stores, including Zales Jewelers and Zales
Outlet, marked 3.6% growth in comps compared with 10.% growth
registered in the comparable year-ago quarter. Comps increased
2.8% at U.S. Fine Jewelry brands compared with an 8.9% rise in
the prior-year quarter.
The company's Canadian Fine Jewelry brands, including Mappins
Jewellers and Peoples Jewellers, registered 3.8% growth in comps
(up 0.5% in constant currency) compared with a 0.7% increase (up
2.3% in constant currency) in the prior-year quarter.
Zale's Kiosk Jewelry business - Piercing Pagoda, marked an
increase of 1% in comps compared with a 3% decline witnessed in
the year-ago quarter.
The company's gross profit inched up 1.2% year over year to
$340 million, while gross margin expanded 10 basis points to
50.6% during the quarter. Operating profit jumped 18.6% year over
year to $51 million, whereas operating margin expanded 110 basis
points to 7.6%, reflecting a 90 basis points decline in SG&A
as a percentage of sales.
Other financial Details
The company ended the quarter with cash and cash equivalents
of $18.5 million, long-term debt of $474 million and
shareholders' equity of $193.9 million.
Other Stock to Consider
Until any further upward revision in Zale's Zacks Rank,
Signet Jewelers Limited
) holding a favorable Zacks Rank #2 (Buy), is another jewelry
retailer worth considering.
MOVADO GRP INC (MOV): Free Stock Analysis
SIGNET GRP PLC (SIG): Free Stock Analysis
TIFFANY & CO (TIF): Free Stock Analysis
ZALE CORP NEW (ZLC): Free Stock Analysis
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