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Zale announces overall holiday comparable store sales up 2.0 percent at constant exchange rates; sees Q2 gross margin of 52.6%
- Co announced that comparable store sales increased 2.0 percent at constant exchange rates, or 0.7 percent on a U.S. dollar reported basis, for the combined months of November and December 2013.
- Revenues for the two-month period were $556 million compared to $567 million in the same period last year. The decrease in revenues is primarily due to the net decrease of 91 stores compared to last year and a decline in the Canadian exchange rate, partially offset by the two percent constant currency comparable store sales growth.
- "During the holiday period, we maintained our focus on increasing exclusive product penetration, driving gross margin improvement and building our core national brands... We executed a solid holiday season despite a challenging retail environment. Our holiday performance gives us confidence we can achieve our financial expectations for the fiscal year."
- For the quarter ending January 31, 2014, the company expects gross margin to be approximately 52.6%, or 200 basis points higher than the prior year quarter. This improvement is primarily the result of efficiencies gained from our merchandise sourcing program, discipline around promotional activities and a favorable commodity cost environment. Operating margin is expected to be approximately 8.6 percent, or 100 basis points higher than the prior year quarter.