Zale Corp Appoints Terry Burman as Chairman

Zale Corp reported net earnings of $5 million for the third fiscal quarter compared with a loss of $5 million in the year-earlier quarter. Revenues were almost unchanged at $443 million from $445 million in the third quarter of fiscal 2012.

Comparable store sales edged up 1.4 percent, following an 8-percent rise in the same period last year. At constant exchange rates, comparable store sales rose 1.7 percent. Meanwhile, adjusting for the impact of February 29 in fiscal 2012, comparable store sales increased 2.6 percent.

“We delivered strong results in March and April after a slow start to the quarter in February, which resulted in our tenth consecutive quarter of positive comps,” said CEO Theo Killion. “These results reflect the recent investments we have made to improve the effectiveness of our guest-facing teams and the appeal of our product offerings.”

For the nine months ended April 30 revenues were $1.47 billion, an increase of $11 million. Comparable store sales increased 2.7 percent in the first nine months of 2013. This increase follows a 6.5 percent increase in the same period last year.

Operating earnings were $38 million, or 2.6 percent of revenues, compared to $27 million, or 1.8 percent of revenues, in the first nine months of fiscal 2012. Net earnings were $18 million compared to a net loss of $8 million in the same period last year.

Meanwhile former Signet Jewelers Ltd CEO, Terry Burman, has been appointed as a director and chairman of the board of Zale Corp. The appointment comes into effect as of May 31.
Burman was Signet's CEO from 2000 to early 2011. He joined Signet in 1995 as the chairman and chief executive officer of Sterling Jewelers, Inc., a US unit of Signet.
Zale Corp CEO Theo Killion said, “Terry’s track record and industry knowledge make him uniquely qualified to contribute to Zale as we execute our plans for long term growth and shareholder value. I’d also like to thank Jack Lowe for his stewardship as chairman as we stabilized the business and created the path to profitability.”