Zale reports smaller Q3 net loss
Dallas Zale Corp. on Wednesday reported a net loss of $12.1 million for its third quarter ended April 30, compared with a year-ago loss of $19.5 million. Revenue fell 5% to $359.8 million, from $379.1 million a year ago.
The company reduced costs by $16 million in the quarter and reduced inventory by $70 million from a year ago to end the quarter at $693 million, mainly due to store closings.
The smaller net loss in its fiscal third quarter was helped by a tax benefit and the company’s efforts to cut costs and sell more items at full price.
The company has been working with adviser Peter J. Solomon Co. to improve its cash situation, including a possible sale of all or part of the company.
“We have completed the initial stages of our turnaround plan,” said Theo Killion, president and interim CEO. “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.”
Earlier this month, Zale received a $150 million lifeline from private equity firm Golden Gate Capital and a new $650 million credit line that will bolster the jeweler’s cash position, allowing it to restructure its retail locations and expand online sales.
RadioShack extends partnership with Lance Armstrong
FORT WORTH, Texas RadioShack’s chairman and CEO Julian Day announced at the company’s annual meeting on May 24 that RadioShack has expanded its partnership with Lance Armstrong and the Livestrong foundation. The company said it will introduce exclusive Livestrong-branded products and accessories in all stores beginning in July.
DSW sees improved sales, earnings for Q1
COLUMBUS, Ohio DSW announced net income of $30.2 million on net sales of $449.5 million for the first quarter ended May 1, compared with net income of $7.1 million on net sales of $385.8 million for the first quarter ended May 2, 2009. Same-store sales increased 16.2% versus a decrease of 4.7% last year.
Diluted earnings per share were 67 cents for the first quarter of fiscal 2010 compared with diluted earnings per share of 16 cents last year.
The company reiterated its estimate of an increase in annual comparable-store sales of approximately 6% to 8% and annual diluted earnings per share of approximately $1.65 to $1.75 for fiscal 2010. The estimated year-over-year earnings increase is expected to occur in the first six months of fiscal 2010. The second half performance implied in the guidance recognizes the more challenging last year comparisons for both sales growth and merchandise margins.