Mixed bag for Zale in second quarter

A little more than a week after Signet Jewelers said it plans to acquire all of the issued and outstanding stock of Zale for $21 per share in cash consideration, Zale reported net earnings of $51 million in the second quarter, a 10% increase from $41 million in the prior-year period.



Same-store sales increased 1.9%, but revenues slipped 2% to $656 million from $671 million.



Zale said the decline in revenues was primarily due to the net decrease of 86 stores compared to fiscal 2013 and a decline in the Canadian exchange rate, partially offset by the 1.9% constant currency same-store sales growth.