2001

Zales Sales Improve, Others Report Mixed Results

Dec. 2001

After hitting a severe slump earlier this year and reinstating CEO Robert DiNicola, Zale is back in the black, reporting sales increases even in spite of the staggering economy.

Zale reported net earnings of $37.6 million in its first quarter—ended Oct. 31, with net sales of $405 million. The sales represented a 9 percent increase over the same period last year. Same-store sales, however, slumped 2 percent—reportedly suffering after Sept. 11th.

The company, the country’s largest retail jewelry chain, is optimistic that sales will continue to be supported by categories like bridal rings, but remains cautious in its fiscal outlook, according to officials.

Tiffany, meanwhile, continued to suffer in its third quarter—showing a 10 percent decrease in net sales. Sales totaled $333 million, down from $372 million during the same period in 2000, a period in which the company was basking in a 15 percent sales growth.

The U.S. market was hit especially hard during this quarter, with net sales dropping 17 percent and same-store sales falling by 19 percent over the same period last year.

The weakening sales at Tiffany, however, will not derail the company’s plans for growth and product.