Zale Corp. Q2 profit more than quadruples on improved sales
DALLAS -- Zale Corp. said Thursday that net income for the quarter ended Jan. 31 surged to $27.2 million, compared with $6.7 million a year earlier.
Zale, which has struggled to regain profitability as the economy improves, posted net income of $27.2 million compared with $6.7 million, or 21 cents per share a year ago. Sales rose to $626.4 million for the quarter, from $582.3 million. Same-store sale rose 7.9%, compared with a decrease of 11.2% during the comparable period in the prior year.
The results included interest expenses and a $6 million income tax expense. In the comparable quarter a year ago, Zale posted a $12 million tax benefit.
Zale said the quarter marked a turning point because same-store sales turned positive.
"Our financial performance for the critical second quarter reflects the collaborative efforts of our total organization focusing on one objective -- delivering a successful holiday," CEO Theo Killion said in a statement. "In doing so, we've taken an important step toward our goal of returning to profitability."