Irving, Texas, Zale Corp. reported a wider quarterly net loss on Tuesday, citing a change in the way it accounts for revenue from warranty plans.
The company’s net loss increased to $28.4 million in the first quarter, compared to $26.4 million a year earlier. Revenue also fell 1.3% to $377 million, excluding its Bailey Banks & Biddle chain, which was sold to Finlay Enterprises earlier this month. This is slightly less than the $378 million figure that the company estimated earlier this month.
"Earnings performance met expectations for the quarter as we offset slightly lower sales with gross-margin rate improvement across all brands after adjusting for the warranty change," CEO Betsy Burton said in a statement.