Analysts expects smaller loss, restructuring details as Zale reports 3rd-quarter results

Earnings Preview: Zale

IRVING, Texas — Jewelry retailer Zale Corp. reports its fiscal third-quarter results before the stock market opens Wednesday.

WHAT TO WATCH FOR: Information about Zale’s restructuring plan. Earlier this month, the company said it secured a $150 million lifeline from private equity firm Golden Gate Capital and a new $650 million credit line bolster the jeweler’s cash position, allowing it to restructure its retail locations and expand online sales as it struggles with weak revenue.

The struggling retailer’s revenue has tumbled during the recession, hurt by tight credit and high unemployment, and it has closed hundreds of stores over the past two years.

Its CEO and other executives left in January following a tough holiday season, and the retailer was working with adviser Peter J. Solomon Co. on ways to improve its cash situation.

WHY IT MATTERS: Since it gained new financing, Zale must now cut costs and increase its revenue to return to sustained profitability.

WHAT’S EXPECTED: Analysts polled by Thomson Reuters on average expect Zale to report a loss of 95 cents per share on revenue of $354.1 million.

LAST YEAR’S QUARTER: Zale lost 73 cents per share on revenue of $379.1 million.

(This version CORRECTS Corrects 3rd-quarter results sted 1st quarter, corrects last year’s quarterly results in last graf to reflect last year’s 3rd quarter sted last year’s first quarter.)