SEC Ends Zale Investigation, Won’t Act Against the Retailer

(IDEX Online News) – The Securities and Exchange Commission’s (SEC) investigation of Zale has ended with a decision not to recommend any enforcement action against the company. In Late October 2009, Zale revealed that the SEC is investigating its accounting after the jewelry retailer restated its 2008 and 2009 earnings.

"We are glad to share with our investors and employees that this matter is now behind us as we continue to focus on returning our business to profitability," Zale CEO Theo Killion said Friday.

Shares of the jewelry retailer plunged nearly 26% when the company first disclosed that it is under a SEC investigation.

Zale announced its 2009 fourth-quarter and annual results after postponing the release twice, saying in a conference call that after conducting a review of advertising accounting, it found “certain advertising costs previously recorded as prepaid were expensed in periods subsequent to the period in which the advertisement actually ran.”