Zale’s Rises After Earnings

Diamond retailer Zale’s (ZLC) rose about 8% after posting a narrower than a expected fiscal first quarter loss.

Zale’s posteda 99-cent loss per share, 43 cents better than expectations. Revenue rose 7.3% year over year and Gross margin jumped 300 basis points to 53.5%, but some of those improvements can be attributed to an accounting change. Comparable store sales rose 5.2% year over year after excluding currency changes.

“Our performance this quarter demonstrates the progress we are making towards returning the Company to profitability,” said CEO Theo Killion. “We�ve now achieved top line growth in four consecutive quarters, and our efforts to expand operating margins are gaining traction.”