September 28, 2010, 8:31 AM

The web sparkles in an otherwise dull sales year for Zale

Web sales grew 13.3% to $63.7 million while total sales declined.

Mark Brohan

Research Director

Lead Photo

Web sales provided the only growth in an otherwise tough fiscal 2010 for multichannel jewelry retailer Zale Corp.

For the fiscal 2010 year ended July 31, Internet Retailer projects:

  • Web sales grew 13.3% to $63.7 million from $56.2 million in fiscal 2009. That calculation is based upon the 13.3% increase in annual e-commerce sales disclosed by Zale CEO Theo Killion on today’s year-end earnings call and Zale’s 2009 e-commerce sales listed in last year’s annual report filed with the U.S. Securities and Exchange Commission.

Zale, No. 189 in the Internet Retailer Top 500 Guide also reported:

  • Total sales decreased year over year 9% to $1.62 billion from $1.78 billion in fiscal 2009.
  • Net loss was $94 million compared with a net loss of $190 million in the prior fiscal year.
  • Comparable-store sales decreased 6.6%.

“Earlier this year, we began executing our multi-year turnaround strategy,” says Killion. “Our results, which show significant progress year over year, also serve as an objective reminder of how far we need to go to reach our ultimate goal: profitable revenue growth.”

Internet Retailer calculates the web accounted for 3.9% of total sales in fiscal 2010, compared with 3.2% in fiscal 2009.

Zale doesn’t break out quarterly web sales, but did report:

  • Total sales declined 3.4% to $345 million from $357 million in Q4 fiscal 2009.
  • Comparable-store sales declined 2.1%.
  • Net loss was $28.5 million compared with $89.8 million in Q4 of fiscal 2009.

 

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