Zale Corp (NYSE:ZLC.DL)

CAPS Rating: No stars

The Company through its wholly owned subsidiaries, is a retailer of fine jewelry in North America.

Recs

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Player Avatar Tastylunch (29.19) Submitted: 3/24/2008 2:29:18 AM : Underperform Start Price: $21.30 ZLC.DL Score: +8.97

Zales has a triple whammy working against it , a bad economy lessening consumer wealth, a weak dollar raising merchandise cost (a good portion of jewelry is imported) and weakening consumer confidence. Furthermore younger more nimble less expensive online competitors like Blue Nile have given Zales a fight when they can afford it the least.Sure they have authorized a massive buyback (300 million) that's driven the stock of late, but their business looks to have a rough year ahead of it. Until they actually figure out a regain business and the economy improves I want no part of Zales

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