29 Oct 2020
DiamondWorld Directory
Home |
News
Home
12% drop in Zale corporation sales
New position strategy effects brand positioning of Zales brand
By: Diamond World News Service
|
Feb 20 2006 12:00AM
|
Reference: 263  

DecreaseIncrease

Zale Corporation reported earnings shy of $88 million for its second quarter of fiscal 2006. Profits for the quarter were down by 12%. "There had been a number of quarterly earnings misses, a number of internal financial targets missed, and our largest brand, Zales, saw its market share continue to erode, " said Betsy Burton, Interim company CEO.

Burton also announced that the board asked Paul Leonard, 51, to leave his post as president of Zales Jewelers, the companys largest division. John Zimmerman was appointed president of a newly-created North American division for Zale. Zale wrote-off inventory for the quarter ending January 31, 2006, and lease settlement costs related to closing 29 Bailey Banks & Biddle locations.

Revenue for the quarter stood at $994 million, up 2.3 percent with same-store sales up 1.4 percent. Year-to-date revenue is up 1.9 percent to $1.4 billion; and same-store sales are up 0.6 percent, but the company excluded the stores it closed.

"Upon review of Zales business, we concluded that the new strategy negatively impacted our brand positioning because it de-emphasized the value component and key diamond categories of the brands assortment," Burton said. Same-store sales for the third quarter are expected to remain flat the company reports.

Follow DiamondWorld on Instagram: @diamondworldnet
Follow DiamondWorld on Twitter: @diamondworldnet
Follow DiamondWorld on Facebook: @diamondworldnet
Have Your Say
* Your view
* Name:
* Email:
* Town/city:
* Country/State:
*  Company:
 
*  Name:
 
*  Mobile:
 
*  Email:
 
 
Subscribe for DiamondWorld weekly Newsletter
 
Advertisement
HouseAd_Trade Fair
Search News by City
Advertisement
Kosher 23460
Advertisement
HouseAd_Trade Fair
Recent Issue
2020
AVAILABLE NOW...!
Advertisement
Kosher 23460
News in Pictures
Videos
Young Diamantaires
Pictures: 16
Stunning Jewellery from Cannes 2019
Pictures: 24
Sparkly Jewels at Oscars 2019
Pictures: 19
Golden Globes 2018
Pictures: 15
Spotted: Who Wore What (December 2018)
Pictures: 4
India Diamond Week
Pictures: 8
Spotted: Who Wore What (October 2018)
Pictures: 7
Spotted: Who Wore What (September 2018)
Pictures: 6
70th Emmy Awards
Pictures: 11
35th India International Jewellery Show 2018
Pictures: 46
JJS - IJ Jewellers Choice Design Awards 2015 powered by GIA
Views: 27632
Diamond World Expert Hour with Evgeny Agureev, Deputy CEO, ALROSA
Views: 2392
GJEPC Chairman Interview
Views: 24455
IJ Jewellers Choice Design Awards 2012 - Part 1
Views: 32019
Promo for IJ Awards 2012 at NDTV Profit
Views: 46240
IJ Jewellers Choice Design Awards 2012- Part 2
Views: 58485
Couture India 2016 - A Business Boutique Show by IJ Magazine
Views: 18844
Savjibhai Dholakiya, Surat Businessman (Diamond Merchant) speaks in Vibrant 2015
Views: 45001
IJ Jewellers Choice Design Awards 2013 - NDTV Video
Views: 43186
Advertisement
GIA_2020
Advertisement
DW News App
Member of:
Supporter of: