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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.05
ZLC's Cash to Debt is ranked lower than
61% of the 1083 Companies
in the Global Luxury Goods industry.

( Industry Median: 2.50 vs. ZLC: 0.05 )
ZLC' s 10-Year Cash to Debt Range
Min: 0.03   Max: No Debt
Current: 0.05

Equity to Asset 0.15
ZLC's Equity to Asset is ranked lower than
60% of the 1073 Companies
in the Global Luxury Goods industry.

( Industry Median: 0.52 vs. ZLC: 0.15 )
ZLC' s 10-Year Equity to Asset Range
Min: 0.11   Max: 0.64
Current: 0.15

0.11
0.64
Interest Coverage 1.51
ZLC's Interest Coverage is ranked lower than
60% of the 771 Companies
in the Global Luxury Goods industry.

( Industry Median: 34.17 vs. ZLC: 1.51 )
ZLC' s 10-Year Interest Coverage Range
Min: 0.43   Max: 23.43
Current: 1.51

0.43
23.43
F-Score: 5
Z-Score: 2.91
M-Score: -2.98
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

vs
industry
vs
history
Operating margin (%) 1.86
ZLC's Operating margin (%) is ranked higher than
55% of the 1067 Companies
in the Global Luxury Goods industry.

( Industry Median: 5.56 vs. ZLC: 1.86 )
ZLC' s 10-Year Operating margin (%) Range
Min: -11.74   Max: 11.73
Current: 1.86

-11.74
11.73
Net-margin (%) 0.53
ZLC's Net-margin (%) is ranked higher than
52% of the 1066 Companies
in the Global Luxury Goods industry.

( Industry Median: 3.93 vs. ZLC: 0.53 )
ZLC' s 10-Year Net-margin (%) Range
Min: -10.65   Max: 6.57
Current: 0.53

-10.65
6.57
ROE (%) 5.40
ZLC's ROE (%) is ranked higher than
62% of the 1049 Companies
in the Global Luxury Goods industry.

( Industry Median: 9.28 vs. ZLC: 5.40 )
ZLC' s 10-Year ROE (%) Range
Min: -52.77   Max: 15.32
Current: 5.4

-52.77
15.32
ROA (%) 0.84
ZLC's ROA (%) is ranked higher than
52% of the 1065 Companies
in the Global Luxury Goods industry.

( Industry Median: 4.71 vs. ZLC: 0.84 )
ZLC' s 10-Year ROA (%) Range
Min: -15.39   Max: 9.74
Current: 0.84

-15.39
9.74
ROC (Joel Greenblatt) (%) 6.76
ZLC's ROC (Joel Greenblatt) (%) is ranked higher than
56% of the 1066 Companies
in the Global Luxury Goods industry.

( Industry Median: 20.96 vs. ZLC: 6.76 )
ZLC' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -31   Max: 35.12
Current: 6.76

-31
35.12
Revenue Growth (%) -2.90
ZLC's Revenue Growth (%) is ranked higher than
53% of the 786 Companies
in the Global Luxury Goods industry.

( Industry Median: 6.50 vs. ZLC: -2.90 )
ZLC' s 10-Year Revenue Growth (%) Range
Min: -2.9   Max: 19.2
Current: -2.9

-2.9
19.2
» ZLC's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q4 2012

ZLC Guru Trades in Q4 2012

Steven Cohen Sold Out
John Keeley Sold Out
» More
Q2 2013

ZLC Guru Trades in Q2 2013

John Keeley 70,000 sh (New)
Chuck Royce 463,300 sh (New)
Jim Simons 409,592 sh (New)
» More
Q3 2013

ZLC Guru Trades in Q3 2013

Charles Brandes 10,100 sh (New)
Paul Tudor Jones 21,800 sh (New)
Jim Simons 640,192 sh (+56.3%)
Chuck Royce 529,300 sh (+14.25%)
John Keeley Sold Out
» More
Q4 2013

ZLC Guru Trades in Q4 2013

Steven Cohen 10,450 sh (New)
Charles Brandes 10,100 sh (unchged)
Paul Tudor Jones Sold Out
Chuck Royce 501,300 sh (-5.29%)
Jim Simons 341,692 sh (-46.63%)
» More
» Details

Insider Trades

Latest Guru Trades with ZLC

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Keeley 2013-09-30 Sold Out 0.01%$8.7 - $15.41 $ 21.0493%0
Charles Brandes 2013-09-30 New Buy$8.7 - $15.41 $ 21.0493%10100
John Keeley 2013-06-30 New Buy0.01%$3.85 - $9.68 $ 21.04246%70000
John Keeley 2012-12-31 Sold Out 0.03%$3.93 - $7.5 $ 21.04250%0
John Keeley 2012-09-30 New Buy0.03%$2.57 - $6.9 $ 21.04420%165000
Lee Ainslie 2011-12-31 Sold Out 0.04%$2.26 - $4.01 $ 21.04498%0
John Keeley 2011-12-31 Sold Out 0.01%$2.26 - $4.01 $ 21.04498%0
Lee Ainslie 2011-09-30 New Buy0.04%$2.79 - $6.81 $ 21.04350%961242
John Keeley 2011-09-30 Reduce -51.72%0.01%$2.79 - $6.81 $ 21.04350%140000
John Keeley 2011-06-30 New Buy0.03%$3.25 - $6.67 $ 21.04362%290000
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Ratios

vs
industry
vs
history
P/E(ttm) 114.30
ZLC's P/E(ttm) is ranked lower than
73% of the 887 Companies
in the Global Luxury Goods industry.

( Industry Median: 17.80 vs. ZLC: 114.30 )
ZLC' s 10-Year P/E(ttm) Range
Min: 12.27   Max: 629.58
Current: 114.3

12.27
629.58
P/B 3.62
ZLC's P/B is ranked lower than
63% of the 1036 Companies
in the Global Luxury Goods industry.

( Industry Median: 1.71 vs. ZLC: 3.62 )
ZLC' s 10-Year P/B Range
Min: 0.06   Max: 3.74
Current: 3.62

0.06
3.74
P/S 0.45
ZLC's P/S is ranked higher than
66% of the 1107 Companies
in the Global Luxury Goods industry.

( Industry Median: 0.74 vs. ZLC: 0.45 )
ZLC' s 10-Year P/S Range
Min: 0.02   Max: 0.78
Current: 0.45

0.02
0.78
EV-to-EBIT 29.97
ZLC's EV-to-EBIT is ranked lower than
68% of the 968 Companies
in the Global Luxury Goods industry.

( Industry Median: 13.34 vs. ZLC: 29.97 )
ZLC' s 10-Year EV-to-EBIT Range
Min: 5.1   Max: 178
Current: 29.97

5.1
178

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 6.97
ZLC's Price/Tangible Book is ranked lower than
74% of the 937 Companies
in the Global Luxury Goods industry.

( Industry Median: 2.00 vs. ZLC: 6.97 )
ZLC' s 10-Year Price/Tangible Book Range
Min: 0.1   Max: 9.19
Current: 6.97

0.1
9.19
Price/DCF (Projected) 13.40
ZLC's Price/DCF (Projected) is ranked lower than
76% of the 551 Companies
in the Global Luxury Goods industry.

( Industry Median: 1.20 vs. ZLC: 13.40 )
ZLC' s 10-Year Price/DCF (Projected) Range
Min: 0.06   Max: 11.18
Current: 13.4

0.06
11.18
Price/Median PS Value 1.24
ZLC's Price/Median PS Value is ranked higher than
50% of the 1015 Companies
in the Global Luxury Goods industry.

( Industry Median: 1.00 vs. ZLC: 1.24 )
ZLC' s 10-Year Price/Median PS Value Range
Min: 0.06   Max: 2.82
Current: 1.24

0.06
2.82
Price/Graham Number 3.24
ZLC's Price/Graham Number is ranked lower than
70% of the 775 Companies
in the Global Luxury Goods industry.

( Industry Median: 1.40 vs. ZLC: 3.24 )
ZLC' s 10-Year Price/Graham Number Range
Min: 0.77   Max: 4.37
Current: 3.24

0.77
4.37
Earnings Yield (Greenblatt) 3.30
ZLC's Earnings Yield (Greenblatt) is ranked lower than
62% of the 983 Companies
in the Global Luxury Goods industry.

( Industry Median: 7.40 vs. ZLC: 3.30 )
ZLC' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.6   Max: 19.6
Current: 3.3

0.6
19.6
Forward Rate of Return (Yacktman) -3.79
ZLC's Forward Rate of Return (Yacktman) is ranked higher than
52% of the 727 Companies
in the Global Luxury Goods industry.

( Industry Median: 10.63 vs. ZLC: -3.79 )
ZLC' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -21.3   Max: 21.1
Current: -3.79

-21.3
21.1

Business Description

Industry: Retail - Apparel & Specialty » Luxury Goods
Compare:LVMUY, CFRUY, HESAY, PPRUY, PRDSY » details
Traded in other countries:ZLC.Germany
Zale Corporation was incorporated in Delaware in 1993. The company is a specialty retailer of fine jewelry in North America. At July 31, 2012, it operated 1,124 specialty retail jewelry stores and 654 kiosks located mainly in shopping malls throughout the United States, Canada and Puerto Rico. It report its operations under three business segments: Fine Jewelry, Kiosk Jewelry and All Other. Fine Jewelry is comprised of five brands, predominantly focused on the value-oriented consumer as its core guest target. Each brand specializes in fine jewelry and watches, with merchandise and marketing emphasis focused on diamond products. Zales Jewelers is its national brand in the U.S. providing moderately priced jewelry to a broad range of guests. Zales Outlet operates in outlet malls and neighborhood power centers and capitalizes on Zales Jewelers' national advertising and brand recognition. Gordon's Jewelers is a value-oriented regional jeweler. Peoples Jewellers, Canada's largest fine jewelry retailer, provides guests with an affordable assortment and an accessible shopping experience. Mappins Jewellers offers Canadian guests a broad selection of merchandise from engagement rings to fashionable and contemporary fine jewelry. Kiosk Jewelry operates under the brand names Piercing Pagoda, Plumb Gold, and Silver and Gold Connection (collectively, 'Piercing Pagoda') through mall-based kiosks, and is focused on the opening price point jewelry guest. Its presence in Kiosk Jewelry has been expanded through the e-commerce site, www.pagoda.com. Internet sales totaled $1.9 million in fiscal year 2012 compared to $1.4 million in fiscal year 2011. It also offers its guests the option to purchase warranty coverage on certain products. At July 31, 2012, Piercing Pagoda operated 654 locations in 41 states and Puerto Rico, sales from which accounted for 13 percent of its total revenues in fiscal year 2012. It provides insurance and reinsurance services for various types of insurance coverage, which are marketed primarily to its private label credit card guests, through Zale Indemnity Company, Zale Life Insurance Company and Jewel Re-Insurance Ltd. These three companies are the insurers (either through direct written or reinsurance contracts) of its guests' credit insurance coverage. In addition to providing merchandise replacement coverage for certain perils, credit insurance coverage provides protection to the creditor and cardholder for losses associated with the disability, involuntary unemployment, leave of absence or death of the cardholder.

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