(MENAFN- ProactiveInvestors - UK) Jewellery retailer Zale Corp. (NYSE:ZLC) narrowed its third-quarter loss Wednesday on revenue growth, amid higher margins and strong comparable sales.
The Irving, Texas-based company sells everything from diamond jewellery to watches, gemstones and gold merchandise.
Zales narrowed its net loss to $4.52 million, or 14 cents per share, compared to a year-ago loss of $8.9 million, or 28 cents per share.
In the latest quarter that ended April 30, revenue grew to $445.1 million, up from the $411 million seen a year-earlier.
On average, analysts had expected a per-share loss of 16 cents, on $434 million in sales, according to Bloomberg.
"The six consecutive quarters of positive comps, coupled with continued momentum through Mother's Day, demonstrates that the strategic initiatives we've undertaken are resonating with our guests," chief executive Theo Killion said in a release.
"In addition, the improvement in operating earnings this quarter is another indication of the progress we are making as we accelerate towards bottom line profitability."
Total comparable store sales rose eight percent. This is considered to be a key metric used to gauge a retailer's financial health as it excludes sales from stores that recently opened or closed during the year.
In the U.S., same-store sales â€" which include the Zale and Gordon Jewellers brands â€" jumped 10.9 percent.
In Canada, same-store sales â€" which include Peoples and Mappins Jewellers â€" increased 3.8 percent. This follows a 21.6 percent growth in the same period of 2011.
Same-store sales from Kiosk jewellery fell 1.1 percent, versus 6.7 percent growth in the same period last year.
Selling, general and administrative costs fell to 47.9 percent from 49.1 percent of revenues a year ago.
Gross margins widened to 51.3 percent from 50.1 percent. Operating profit was $6 million, versus an operating loss of $5 million last year.
The company's share price rose 3.43 percent to $2.41 each in trade on the New York Stock Exchange Wednesday afternoon.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.