Zale

Peoples Jewellers Ltd. of Toronto and Swarovski International Holding AG of Zurich completed their joint tender offer to acquire the Dallas-based jewelry retailer for about $560 million. On Friday, Peoples President Irving Gerstein was elected president and chief executive of Zale, and Zale's directors--other than Gerstein and two other Peoples designees on the board, Bertrand Gerstein and James Gillies--resigned. Zale operates 1,500 jewelry stores in the United States and abroad.

Taking stock of a rough holiday season, retailers are shuttering stores and trimming expansion plans as they stare down edgy consumers. Industry analysts said Thursday that there was little mystery behind the plans announced by several chains this month. "We're in poor economic times, and when you're in poor economic times, retailers close stores" and reduce the number they plan to open, said Eric Beder of Brean Murray, Carret & Co. "That will accelerate into the second half of 2008." Zale Corp.

Zale Corp., the nation's largest jewelry chain, said today it will pay $310.9 million for Gordon Jewelry Corp., the No. 2 chain with more than 600 stores. Gordon stock, which already had been trading at record levels on speculation that the company would be sold, shot up more than $6 on the news to near the proposed sale price of $36.75 a share. Gordon, founded as a general store in Houston in 1905, had a net profit last year of $6.2 million on sales of $389.6 million. About two-thirds of Gordon's stores sell contemporary, moderately priced jewelry, almost exclusively in shopping malls.

Zale Corp. posted a loss in its fiscal third quarter, and the jewelry retailer blamed high gasoline prices that left middle-class consumers with less cash to spend. Zale officials also said they had hired an advisor to review the performance of the company's jewelry chains. It could lead to management changes or the sale of some brands, officials said. For the three months ended April 30, the Irving, Texas-based company lost $3.1 million, or 6 cents a share, compared with a profit of $16.

Re "Mexico Deep-Sixes Plan for Baja Lagoon Saltworks," March 3: Hurray, the whales win! With joy and gratitude I thank everyone who participated in the fight to save the San Ignacio Lagoon from the wicked project of turning it into a salt farm. Jubilation with triumph rings "Thar she blows!" just in time for the whales' birthing month of March. ZALE PARRY West Hills

The board determined that it would be inappropriate to consider a previously announced proposal by Peoples Jewellers of Toronto to buy the 85% of Zale that it does not already own. Directors voted after being informed that holders of 32.3% of Zale's outstanding stock had indicated in an SEC filing that they would oppose the merger. The filing was by members of the Zale and Lipshy families. Any merger involving Zale would require the approval of two-thirds of all shareholders.

Zale Corp., the nation's largest jewelry retailer, reinstated former Chairman and Chief Executive Robert DiNicola to replace Beryl Raff and said it postponed reporting its fiscal second-quarter earnings from Wednesday until March 7. Zale said Raff, who was named to replace DiNicola in August, resigned to spend more time with her family and on personal interests. Zale and other jewelry retailers warned in December that quarterly profit would fall short of estimates because of weak holiday sales.

Zale Corp., a jewelry retailer with over 1,500 outlets worldwide, said it received an unsolicited merger proposal worth at least $434 million from People's Jewelers of Toronto. Donald Zale, chairman and chief executive, said in a prepared statement that the founding Zale and Lipshy families, which control about 30% of the Dallas-based company's 12.4 million shares, probably will oppose the bid.

Donald Zale, chairman of the Irving, Tex., jewelry retailer, said the company's board rejected a takeover by Peoples Jewellers Ltd. of Canada. Zale also announced a major restructuring plan, including a possible sale of its European retail operations, which will result in a one-time charge of about $80 million to $90 million against net income for the fiscal year ending March 31. The plan includes the sale of two U.S.

A West Hollywood woman has filed suit against Zales jewelers, alleging that she was the object of age and sex discrimination while an employee of the firm's Glendale Galleria branch. Linda Skladzien, 46, is seeking more than $200,000 in damages from Dallas-based Zale Delaware Inc., according to the complaint filed in Glendale Superior Court. Zales regional manager Bruce Reschke and store manager Dana Baldizar are also named as defendants. The company is denying the allegations.

Shares of jewelry retailer Zale Corp. tumbled almost 10% on Monday after the company said the Securities and Exchange Commission had started a probe into its accounting, executive pay and other matters. The SEC is looking into the company's accounting for extended service agreements, leases and accrued payroll as well as other matters, Zale said. The company's stock slumped $2.64 to $25.16.

Zale Corp., the largest North American jewelry retailer, had a second-quarter net loss of $46.2 million after writing down the value of its Piercing Pagoda acquisition. The net loss amounted to $1.44 a share, compared with net income of $95 million, or $2.70 a share, a year earlier, Zale said. Sales increased 1.3% to $908.4 million. Irving, Texas-based Zale shares rose 77 cents, or 2.6%, to $30.01 on the NYSE.

Zale Corp.'s fiscal fourth-quarter profit will be less than forecast because of slowing sales at the largest North American jewelry retailer. Shares fell 15%, the biggest drop in at least two decades. Profit will be 14 cents to 17 cents a share, excluding costs, in the quarter ending July 31, Zale said. The average estimate of analysts surveyed was 24 cents. Sales at stores open at least a year will rise 1% to 2%, the jewelry seller said. Slowing sales also led the largest U.S.

Zale Corp.'s fiscal fourth-quarter profit fell 74% to $3 million, or 9 cents a share, exceeding reduced estimates, as the jewelry chain cut prices to get rid of lower-quality gems and gift items. Sales in the quarter ended July 31 rose 9.9% to $417 million, but sales at stores open at least a year fell 9.7%. Zale had warned this month that profit would be 5 cents to 10 cents a share, prompting analysts to reduce forecasts from 17 cents to 6 cents.

Zale Corp., North America's largest jewelry retailer, warned that fourth-quarter earnings will fall far short of Wall Street expectations as sales at stores open at least a year dropped nearly 10% in the period. The jewelry retailer said that earnings for the three months ended July 31 will be 5 to 10 cents a share. Analysts surveyed by Thomson Financial/First Call had expected earnings of 17 cents a share. Zale's sluggish sales performance compares with a 6.

Zale (ZLC) Jim: Buy Mike: Buy * Jim: Our two stocks today both got knocked silly recently, Mike, which no doubt prompts many investors to wonder whether the shares might now be a buy on the premise that the bad news is out of the way. Mike: Except that these situations always beg the question: Is the bad news really out of the way? Sometimes bad news begets more bad news. Jim: Where there's smoke there's fire. Mike: Or a smoke-making machine. Anyway, at Zale Corp.

Despite People's Jewellers Ltd. raising its bid for Zale to more than $474 million, the nation's largest jewelry retailer says it remains opposed to being acquired by the Canadian firm. Members of the Zale and Lipshy families, who are relatives of the company's founder, Morris B. Zale, control about one-third of Zale's 12.4 million common shares outstanding. People's owns another 15%.

Zale Corp., the biggest U.S. specialty jewelry retailer, said fiscal fourth-quarter profit rose 36% to $11.6 million, or 32 cents a share, beating analysts' expectations of 29 cents. Zale, based in Irving, Texas, said sales jumped 15% to $373.8 million. Sales at stores open at least a year rose 6.4%. Zale also said that Robert DiNicola retired as chairman and will be replaced by Chief Executive Beryl Raff.

Zale Corp., the nation's largest jewelry retailer, reinstated former Chairman and Chief Executive Robert DiNicola to replace Beryl Raff and said it postponed reporting its fiscal second-quarter earnings from Wednesday until March 7. Zale said Raff, who was named to replace DiNicola in August, resigned to spend more time with her family and on personal interests. Zale and other jewelry retailers warned in December that quarterly profit would fall short of estimates because of weak holiday sales.

Zale Corp., the biggest U.S. specialty jewelry retailer, said fiscal fourth-quarter profit rose 36% to $11.6 million, or 32 cents a share, beating analysts' expectations of 29 cents. Zale, based in Irving, Texas, said sales jumped 15% to $373.8 million. Sales at stores open at least a year rose 6.4%. Zale also said that Robert DiNicola retired as chairman and will be replaced by Chief Executive Beryl Raff.