Clearance Zale

The revolving doors on the executive floor of Zale Corp. (Irving, Texas) turned again on Friday, when president and coo Alan Shor abruptly announced his resignation and cfo Sue Gove added coo and executive vp to her title. Recently appointed ceo Mary Forte became president as well.

The news came as the 2300-unit jewelry retailer announced that sales and earnings for the quarter ending July 31, 2002, will fall short of expectations. Same-store sales are expected to increase 1-2 percent, well below forecasts.

Zale's director of investor relations David Sternblitz said the company enjoyed a strong Mother's Day period but saw sales sag in June and early July. “We're seeing less traffic. It's really the economic situation,” Sternblitz said. Earlier in the week, luxury jeweler Tiffany & Co. (New York) had said earnings would be at the low end of previous expectations and that U.S. same-store sales were flat.

Zale's stock price tumbled 14.8 percent on Friday afternoon, following the announcements.

Shor, who joined Zale as general counsel in 1995 and became president in August 2000, said he was leaving to “look to the next challenge in my career.” Shor played a role in selling the company's credit and lease operations and acquiring Piercing Pagoda kiosks and Peoples Jewellers of Canada. He also helped guide decisions on real estate and personnel, the company said.

Gove joined Zale in 1980 in the accounting department and has held a series of financial and operational jobs. She was named cfo in December 1997. As coo, she will oversee distribution, real estate and other functions, the company said.

The company has been struggling since a disappointing 2000 holiday season, which led to the ouster of ceo Beryl Raff and the return of already-retired Robert DiNicola. In June, the company named Forte as ceo and said DiNicola would remain chairman.