Zale Q2 earnings rise as sales fall

Dallas – Zale Corp. reported a 10% in net earnings during the second quarter of fiscal 2014, rising to $51 million from $41 million in the same quarter the prior year. However, revenues dipped 2% to $656 million from $671 million, while same-store sales rose 1.9%.

Zale attributed the decline in revenues primarily to the net decrease of 86 stores compared to fiscal 2013 and a decline in the Canadian exchange rate, partially offset by the 1.9% constant currency same-store sales growth.

On Feb. 19, 2014, Signet Jewelers Limited and Zale Corp. announced they have entered into a definitive agreement for Signet to acquire all of the issued and outstanding stock of Zale for $21 per share in cash consideration. The transaction is subject to Zale stockholder approval, certain regulatory approvals and customary closing conditions. The transaction is anticipated to close by the end of 2014.

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