Zale Losses Shrink, Expects to Return to Profitability Next YearAugust 30, 12
The loss Zale posts at the end of the fiscal year ended July 31 is a much reduced loss compared to 2011, when it lost $112 million.
Comparable store sales increased 6.9 percent.
"We recorded our seventh consecutive quarter of positive comps, reported a sizeable improvement in operating margin and strengthened our capital structure," said CEO Theo Killion.
For the fourth quarter, Zale reported revenues were $407 million, an increase of 7.9 percent year-over-year. Comparable store sales increased 8.3 percent.
Net loss was $20 million in the quarter.
In its 2013 outlook, Zale states that based on the "current momentum of the business and the recent debt refinancing," the company expects to post a profit in fiscal 2013.