Another key officer from Zales resigns

Paul G. Leonard, 51, president of the company�s largest division, Zales Jewelers resigned within a month of resignation of Mary Forte CEO of Zales. The two top notch resignations have turned on the fire on Zales but resignations are attributed to failed marketing strategy and company loss. At the same time, John Zimmermann, 47, was promoted from president of Zales Peoples Jewellers chain, the biggest in Canada, to the presidency of a new North American division.

The Dallas Morning News quoted interim Zale CEO Betsy Burton as saying that �the company believes the plan adopted by Leonard and former Zale CEO Mary Forte, to market to higher-income customers and try to get product direct from foreign suppliers had not worked, and the company would go back to targeting average-income Americans.�

Burton also was critical of a sales campaign by the Dallas-based Richards Group, which had replaced the long-time slogan �The Diamond Store� with �Be Brilliant.� She said that shortages of diamond fashion jewelry and solitaires had depressed sales by $22 million in November and December 2005, holding revenue for the three months ending January 31 to $979 million, a disappointing 2.8% increase, which apparently led to the executive shake-up, despite the $88 million in net income.