ZLC’s Fiscal Q3 Net Loss Narrows; Beats Consensus

The largest North American jewelry store operator, Zale Corporation ZLC, announced that for its revenue for the fiscal Q3 ended April 30, dropped 5.1% to $360 million from $379 million in the year-ago period. The Dallas-based company said that its net loss narrowed to $12.1 million, or $0.38 a share, from a net loss of $19.5 million, or $0.61 a share in the prior year. The adjusted net loss was $0.76 a share, comfortably beating the Street view of a loss of $0.95 a share. ZLC’s comparable store sales for the quarter fell 2.2%. The company’s gross margins expanded 70 basis points to 50.8%. Theo Killion, President and Interim CEO of Zale, said, "We have completed the initial stages of our turnaround plan. With the additional liquidity that we announced earlier this month, all of our focus will be on fixing the business in order to return it to profitability." Chief Financial Officer Matt Appel commented, "The financial results for the third fiscal quarter of 2010 reflect our continuing discipline with respect to promotional activity, inventory levels and expense management. The recent enhancements to our capital structure provide the necessary foundation for the execution of our business plan." Shares of Zale dropped 3.60% to $2.68 yesterday. Read more from Benzinga's Company news.