Zale Corp. to Close 115 Stores

Dallas Zale Corp. plans to close 115 under-performing stories and cut 245 jobs after posting a net loss for its fiscal second quarter, which ended Jan. 31.

The company said it expects to save about $34 million in expenses through fiscal 2010 with the reduction in the number of Zales stores, which will be closed as leases mature.

Zale Corp. plans to slash $175 million from its budget through cost and inventory reductions, including the elimination of 245 jobs. Of those job cuts, 75 were unfilled positions, according to the company.

Zale Corp. posted a loss of $23.6 million, down from a profit of $60.8 million during the same quarter last year. The company attributes its loss partly to charges related to goodwill impairments and $5 million in expenses tied to store impairments.

Sales during the quarter hit $679 million, a 17.9% decline from $828 million in the year-ago period.