Jeweler Zale posts bigger fiscal 3rd-quarter loss

Jeweler Zale Corp. said Wednesday it posted a bigger fiscal third-quarter loss because of a drop in same-store sales and tough economic conditions that diminished demand for jewelry.

Zale posted a loss of $23.2 million, or 73 cents per share, compared with $16.8 million, or 40 cents per share, last year.

Results were hurt by 17 cents per share in the most recent quarter because there were fewer outstanding shares.

Revenue declined 20 percent to $379.1 million from $476.7 million. Same-store sales, or sales at locations open more than one year, dropped 20 percent.

Analysts surveyed by Thomson Reuters, who usually exclude one-time items from their estimates, expected a loss of 46 cents per share on revenue of $428.5 million.

Selling, general and administrative expenses declined to $209.5 million from $231.7 million.

Zale sells diamonds and other jewelry at more than 2,050 locations in the U.S., Canada and Puerto Rico.

Shares tumbled 78 cents, or 15.5 percent, to $4.26 in morning trading.