Zale cites high fuel prices for loss

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 $16.8 million, or 35 cents, a year earlier.

Excluding one-time items, Zale said it earned $2.2 million, or 5 cents a share. Analysts surveyed by Thomson Financial expected a loss of 10 cents a share.

Revenue fell 3% to $511.9 million from $526.9 million. Analysts expected $512.2 million.

Same-store sales, a key measure in retailing, fell 3.4% from a year earlier, and the company is trying to whittle down an inventory glut.

“It’s a challenging macro environment. Retailing and jewelry retailing in particular are tough,” Chief Executive Betsy Burton said.

She blamed higher gasoline prices that are taking a bigger chunk of middle-class consumers’ spending money.

“Clearly they are cutting back in jewelry more than in things such as apparel, which is more of a necessity,” Burton said.

Shares of Zale rose 31 cents, or 1.1%, to $27.91.