Zale Corp. (NYSE: ZLC) shares jumped 21% to $5.35, after the diamond and jewelry retailer reported third-quarter revenue that beat analysts’ expectations. Volume for the stock was 4.3 million shares, or more than 10 times its daily average.
Zale announced that for the third fiscal quarter ended April 30, 2011, it had a net loss from continuing operations of $10 million, or $0.31 per share, compared to a net loss from continuing operations of $15 million, or $0.46 per share, in the comparable quarter last year.
Revenues for the quarter were $412 million, an increase of $52 million, or 14.5%, compared to $360 million in the same period last year. Comparable store sales during the quarter increased 15.2%, compared to a decrease of 2.2% during the same period last year. At constant exchange rates, which exclude the effect of translating Canadian currency denominated sales into U.S. dollars, comparable store sales increased 14.2% for the quarter.
Zale CEO Theo Killion commented, “We continue to make progress in our multi-year initiatives to return the Company to profitability. Our results validate that the work we’ve done to improve our marketing, our product and our guest experience is beginning to take hold.”
“This quarter marked the second consecutive quarter of positive same store sales,” concurred CAO/CFO Matt Appel. “We are pleased with the trend of improved financial performance resulting from our turnaround initiatives.”
Irving, Texas-based Zale Corporation is a leading specialty retailer of diamonds and other jewelry products in North America, operating approximately 1,845 retail locations throughout the United States, Canada and Puerto Rico, as well as online.