Home / Knowledge / News / Fashion / Jewelry retailer Zale's Q1 same store sales drop 1.2%

Jewelry retailer Zale's Q1 same store sales drop 1.2%

05
Nov '05
Dallas based largest specialty jewelry retailer Zale Corporation that for the first quarter ended October 31, 2005, comparable store sales decreased 1.2 percent. Total revenues for the period were $427 million compared to last year's first quarter revenues of $423 million, an increase of 0.9 percent.

"Company is disappointed with these sales results," commented Mary L. Forte, President and Chief Executive Officer. "Delay in receipts of new merchandise related to the Zales repositioning resulted in lower than planned in-stock positions during the quarter. The considerable changes to their product offerings, along with the establishment of new vendor relationships, has temporarily extended the lead time of supplying merchandise to their stores. These inventory issues negatively impacted the performance at the Zales brand, which had a significant effect on their consolidated results.

In addition, the Company stated that the impact of the hurricanes on the quarter resulted in lost sales, which negatively affected earnings by approximately $0.03 per share.

In connection with the closing of approximately 30 Bailey Banks & Biddle stores that do not fit with the brand's long-term positioning in the luxury goods market, the Company expects to record, in its first fiscal quarter, an impairment charge of approximately $8 million, or $0.10 per share, in accordance with SFAS No 121, "Accounting for Impairment of Long-Lived Assets."

This impairment charge, being non-cash in nature, does not affect the Company's cash flows. The Company also incurred incremental markdown charges of approximately $0.01 per share related to the liquidation of inventory in a subset of these stores scheduled for closure.


Must ReadView All

Pic: Shutterstock

Textiles | On 26th Feb 2020

Bangla Tariff Commission fears grave impact on China trade

The impact of the coronavirus outbreak on Bangladesh-China trade is...

Pic: Shutterstock

Textiles | On 26th Feb 2020

UK risks losing up to 14% of exports to EU if no deal: UN

Non-tariff measures could cause major fractures in post-exit UK-EU...

Pic: Shutterstock

Textiles | On 26th Feb 2020

Turkey's textile industry employs 1.67 mn: minister

Turkey's textile and garment industry currently employs around 1.67...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Knowledge sharing platform needed for sustainable water management

Siddharth Biyani, Mangalam Industries Pvt Ltd

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Kamlesh Vaghela, RK Textiles

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Erwin Devloo,

Erwin Devloo

Picanol develops, produces and markets high-tech weaving machines, based...

Priyanka Gandhi,

Priyanka Gandhi

Established in 2016, Surat-based Shree Ganesh Yarns is a manufacturer of...

Hans Gerhard Wroblowski,

Hans Gerhard Wroblowski

Germany's Monforts is a leading manufacturer and exporter of textile...

Steve Cole, Xerium Technologies

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Alfonso Marra, Klopman

Alfonso Marra
Klopman

It was in 1968 that Klopman introduced the concept of poly/cotton workwear ...

Kevin Nelson, TissueGen

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by Aprajita Toor were born out of a deep desire to create...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search