Zale Corporation
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| Zale Corporation | |
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| Type | Public (NYSE: ZLC) |
|---|---|
| Founded | 1924 (Wichita Falls, Texas) |
| Headquarters | Irving, Texas |
| Key people | Betsy Burton, President & CEO Rodney Carter, CFO |
| Industry | Retailing |
| Revenue |  $2.4 billion USD (2006) |
| Operating income |  $90.7 million USD (2006) |
| Net income | $54.5 million USD (2006) |
| Employees | 16,300 |
| Slogan | Zales: The Diamond Store |
| Website | www.zalecorp.com |
Zale Corporation (NYSE: ZLC) is the second largest specialty retailer of fine jewelry in North America, operating over 2,300 retail locations, (which includes both kiosks/carts and stores) throughout the United States, Canada, and Puerto Rico.[1] Zale Corporation is comprised of several different business units:
- Zales Jewelers: The flagship brand and main focus of the company. Their main competition is Kay Jewelers. Zales has returned to their slogan "The Diamond Store" (which was their slogan before "Be Brilliant") and a focus on the middle-income market.
- Zales Outlet: The outlet version of Zales that carries mostly clearance merchandise.
- Gordon's Jewelers: The company's regional chain that focuses on a slightly higher market than Zales. Gordon's also focuses more on the bridal market than Zales. The current slogan seems to be "100 Years of Love".
- Bailey Banks & Biddle: The company's luxury chain. They compete with other high-end retailers such as Tiffany and independent jewelry stores. The name "Zell Bros" is used for one location. Zalecorp has recently closed many of their Bailey Banks & Biddle locations that were underperforming, with 32 stores closed in fiscal year 2006. Stores use the slogan "Where Treasures Live".
- Piercing Pagoda: A kiosk chain that focuses on lower-end merchandise such as 10K gold chains, charms, and bracelets. Their business is driven through ear piercing.
- Peoples Jewellers: The Canadian version of Zales. Also known as "The Diamond Store".
- Peoples II: The Canadian version of Piercing Pagoda. Their locations are kiosks and carts.
- Mappins Jewellers: Canadian chain. Targets a higher-end market than Peoples.
Zalecorp also operates two Internet-based enterprises: Zales.com and Baileybanksandbiddle.com.
Zale used to operate leased fine jewelery departments (in department stores) known as Diamond Park Fine Jewelers, but sold off the chain to Finlay Enterprises in 1997.[2]
In fiscal year 2006 Zale Corporation tested a repair store concept, branded as Master Jewelry Repair. The concept was deemed a failure and all three test stores were closed in 2006. The stores were similar to Fast Fix Jewelry Repair locations.
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[edit] History
The company began in 1924 in Wichita Falls, Texas, when Morris (M.B.) Zale, William Zale, and Ben Lipshy opened the first Zales Jewelers store.[3] At the time, credit plans were not common, so their concept of offering one was fairly revolutionary, marketed under the slogan, "a penny down and a dollar a week." By the beginning of World War II, the company had expanded to a dozen stores throughout Texas and Oklahoma.
During the lean war years, Zales maintained its prices and looked for expansion opportunities. In 1944, Corrigan's of Dallas was acquired, a finer jewelry purchase that eventually launched the Bailey Banks & Biddle brand.
The year 1957 was marked both by Zales' first entry into a shopping center (rather than stand-alone downtown locations), and the company's listing on the American Stock Exchange.
In 1984, the company was bought out by a Canadian and Austrian consortium, and in 1989, the entity bought Gordon's Jewelers.
[edit] Legal Actions
In August 2006, a legal class action complaint was brought against Zale Corporation, on behalf of common stock purchasers between early 2005 and May 2006. The complaint charges Zale and certain of its officers and directors with violations of the Securities Exchange Act of 1934, specifically for omitting or misrepresenting material adverse facts about the company's financial prospects. [4]
[edit] Notes
- ^ Zale Corporation (2005). Zale Corporation: Our History. Corporate homepage. Retrieved on 2006-09-17.
- ^ Staff of JCK-Jewelers Circular Keystone (1997). Finlay to Buy Assets of Zale Corp's Diamond Park. industry magazine and website. Retrieved on 2007-2-17.
- ^ Zale Corporation (2005). Zale Corporation: Our History. Corporate homepage. Retrieved on 2006-09-17.
- ^ Steven J. Toll (August 23, 2006). Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Announces Class Action Lawsuit Against Zale Corporation. Business Wire. Retrieved on 2006-09-17.
