Zale Q3 Sales Increase 6.3%

Dallas—Same-store sales at Zale Corp. increased 5.8 percent for the third quarter ended April 30, and revenues for the period increased 6.3 percent to $477 million, compared with $449 million for the same period last year, the company announced today.These amounts, both current and comparable, exclude revenues from the Bailey Banks and Biddle stores, which Zale sold to Finlay Fine Jewelry Corp. on Nov. 9, 2007.Year-to-date same-store sales decreased 2.3 percent, and year-to-date revenues decreased 2.4 percent to $1.68 billion, compared with $1.72 billion for the same period last year.

Unrecognized revenues related to warranty sales increased $17 million for the third quarter and $64 million year-to-date. These increases reflect the incremental cash collected and the future positive impact to earnings as a result of the change to the company's lifetime jewelry-protection plans.

"We have a focused agenda to improve execution, and these sales results reflect the early success of our plan," Zale Corp. President and Chief Executive Officer Neal Goldberg said in a media release issued on Thursday. "Sales were fueled primarily by an aggressive clearance strategy that exceeded our expectations with $55 million of inventory liquidated in the third quarter. This clearance strategy is critical for us to achieve our goal of becoming clearer in our product offering and more effective in differentiating the good, better, best value proposition."

According to Goldberg, Zale will further reduce its inventory by $100 plus million using the same aggressive promotional activity.

Zale is a specialty retailer of fine jewelry in North America operating approximately 2,200 retail locations throughout the United States, Canada and Puerto Rico, as well as online. Zale's brands include Zales Jewelers, Zales Outlet, Gordon's Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda.

Zale will announce its third quarter earnings on May 22.

For additional information on Zale Corp., visit its Web site, Zalecorp.com

Michigan rocks at this year's gem and mineral show

Filed under The News Herald : At first glance, collecting rocks might not seem like the most exciting hobby, but there's more to it than meets the eye.

Apart from the thrill of unearthing new and interesting stones, collectors learn the history and geological makeup of different regions.

"Rocks aren't just black and gray," club President Dick DePodesta said. "It's about the beauty of nature and the rarity of the rocks."

For those who think rock collecting might not be their cup of tea, DePodesta encourages them to give it a chance.

"My wife got me started and the more I got into it, the more I liked it," he said.

The Midwest Mineralogical and Lapidary Society's annual gem and mineral show draws hundreds of people to the Southgate Civic Center every year.

"It's not necessary to buy to go to one of these shows," he said. "You can just talk to the dealer and find out about what you're looking at."

But some people might wonder what goes on at such an event.

Showcases of collectors' favorite rocks of all sizes, shapes and colors line the aisles, with awards bestowed on collectors with the most educational, most beautiful and most interesting displays, among others.

"In the past, we've had moon rocks and cases of jewels," he said.

An exhibit of dinosaur fossils was a big hit several years ago, he added.

Sulphur, celestine and quartz are among the minerals found in collections.

Celestine, a favorite among mineral collectors with its sky blue color, is one of the unique finds in the mineral kingdom.

"Michigan Rocks" is the show's theme this year, focusing on the background and history of rocks and minerals found in the state's parks, lakes and roads, including Petoskey stones, Lake Superior agates and datolites.

"It's been a long time since we did something special on Michigan," he said.

A special emphasis is put on attracting children to the annual event.

"The whole idea is to get them interested so they can keep this hobby going," DePodesta said.

There will be 20 dealers and free mineral kits for children.

Students in third through eighth grades and their teachers can visit the show for free during "Kids' Day" next Friday.

Activities abound for the tykes and include spinning a mineral wheel to win minerals and visiting the "gold mine" to dig through sand for minerals.

"They can go to the Minerals for Miners table to pick out minerals, there're grab bags with special tickets to turn in for free prizes, and they can wander through the dealers to buy things at kid prices," he said.

About 700 students are expected to come through this year.

That exposure helps the club achieve its primary purpose — to promote interest in the fields of mineralogy, geology and paleontology, including lapidary and related arts.

Jewelry and bead making, silversmithing and the art of cabochon — rounding and polishing gemstones — are some of the group's activities.

Founded in 1956 by a group of people who met at a local rock shop, the club boasted more than 200 members at one time, but interest has dwindled over the years.

DePodesta estimates that about 117 people are active today in the club, which meets the third Tuesday of each month, except in July and August.

Those two months are special times for the group to search for more prized specimens.

"We take off and go collecting rocks all over the country," he said.

Members go on digs to search quarries, beaches, parks and roads around the country for unique and interesting finds.

For some, that means a trip to Hungry Hollow in Canada to look for fossils or a jaunt to the Red Metal Jamboree in the state's Upper Peninsula to search old copper mines.

And each member is required to undergo safety training to enter the mines and quarries.
"None of the quarries will let you in without that anymore," DePodesta said.

A monthly newsletter, annual banquets and speakers are part of the club's activities.

The 2008 Gem and Mineral Show will take over the Southgate Civic Center annex, 14700 Reaume Parkway, from 4 to 8 p.m. next Friday, 10 a.m. to 6 p.m. May 17 and 11 a.m. to 5 p.m. May 18.

Admission is $4 for adults, $3 for senior citizens and $1 for teenagers.

For more information about the show, e-mail ornwhanschu@prodigy.net, call Mike Bomba at 1-313-381-8456 or Norm Hanschu at 1-734-455-8596.

State Dept., Customs Officials to Provide KPCS, Clean Diamond Act Guidance at JCK

New York City: Sue Saarnio, special advisor for conflict diamonds at the U.S. State Department and Vincent Dantone, program manager for trade policy enforcement programs at the U.S. Customs and Border Protection, will be available to provide legal compliance information to rough diamond importers and exporters about the Kimberley Process (KPCS) and the Clean Diamond Trade Act at the JCK Las Vegas Show.

Under U.S. law, all rough diamond shippers are required to use U.S. Kimberley Process certificates when importing or exporting rough diamonds. Importers and exporters also must send copies of Kimberley Process certificates to the U.S. Census Bureau's toll-free fax line at 1-800-457-7328 and maintain records of all rough diamond shipments for five years. Importers also are required to send confirmation of receipt to foreign exporting authorities, among other requirements.

Saarnio and Dantone will be based at the Jewelers Vigilance Committee (JVC) booth, L-13, Sands Expo & Convention Center, Sunday, June 1 and Monday, June 2.

For information about the Kimberley Process and Clean Diamond Trade Act, visit: www.state.gov/e/eeb/diamonds or http://www.kimberleyprocess.com/.

A Diamond is Forever Floral Spectacular Kicks-off at Grand Central

New York, NY – A bevy of Hollywood elite and New York glitterati flocked to historic Grand Central Terminal to kick off the opening of the A Diamond Is Forever Floral Spectacular designed by chic celebrity floral designer Antony Todd, commissioned in celebration of Mother’s Day.

The stunning installation was created with more than 24,000 long stem red roses spelling out A Diamond Is Forever. Located along the Vanderbilt Hallway Bridge inside Grand Central Terminal, the floral spectacular is as beautiful as it is meaningful. The concept of using roses as the material for the installation illustrates the idea of the temporary versus the permanent. Over time these roses will age. And as they do, the timelessness of diamonds becomes even clearer to those observing it.

To honor Todd and his vision, A Diamond Is Forever hosted a small intimate luncheon overlooking Grand Central Terminal’s main concourse and the floral spectacular. The star studded lunch was attended by the likes of Diane Kruger, Lake Bell, Natasha Richardson, Tory Burch, Coca Rocha and Elisabeth Hasselbeck who joined Todd in celebrating the brilliant and beautiful installation amidst a sea of flowers and diamonds.

As part of the festivities, A Diamond Is Forever is also giving away a diamond gift each day for three days. Beginning Wednesday, May 7th through Friday, May 9th anyone who walks by the Floral Spectacular inside Grand Central Terminal has the chance to pick up one of 1,000 roses being handed out daily by A Diamond Is Forever. Everyone who picks up a rose will get a code that they can then enter online at http://www.adiamondisforever.com/ for a chance to win a 3 Stone Diamond Necklace worth $5,000. If you can’t make it to Grand Central Terminal, you can also register at http://www.adiamondisforever.com/ for a chance to win.

JBT: Bankruptcies down, claim amounts up in Q1

New York—The news on credit in the American jewelry industry in the first quarter of 2008 was both good and bad, according to statistics from the Jewelers Board of Trade (JBT).

While the JBT reported a decline in the number of collection claims placed in the first quarter of 2008, compared with the first quarter of 2007, the average amount per claim jumped dramatically. The number of claims dropped by 9.4 percent in the first quarter—850 claims, as opposed to 938 for the same period in 2007—but the average claim increased 24.6 percent, from $6,583 to $8,203.

Bankruptcies, industry-wide, dropped by 15 percent in the first quarter of 2008, totaling 20 as opposed to last year's 17. As in the first quarter of 2007, the overwhelming majority of bankruptcies occurred at the retail level, with no regional trend discernible.

So far this year, decreases in credit ratings have outpaced increases by 1,703 to 1,559: a dramatic shift from the first quarter of 2007, when increases led decreases by 1,548 to 1,041. Downward adjustments increased by 63.4 percent in the first quarter of 2008, compared with the same period of 2007. For the month of March, the increase was 79.5 percent compared with March 2007.

In terms of new businesses so far this year, 60 new retailers have opened their doors, compared with 59 in the first quarter of 2007. New wholesalers are up 60 percent (16, compared with 10 in the first quarter of 2007), but only three new jewelry manufacturers have opened so far this year, compared with 12 in the first quarter of 2007: a 75 percent drop, perhaps reflecting the growing tendency toward global sourcing of various industry-related goods.

Breakthrough Makes Hand Polishing At 200x Magnification Possible

Diamond manufacturers Overseas Diamonds, who market isee2 super ideal cut diamonds, has announced a technology breakthrough that makes it possible for the first time to cut and hand polish diamonds at a 200x magnification.

Utilizing high-definition imaging and proprietary tools at the cutting wheel, the new technology reveals aspects of the diamond’s polish that are otherwise hard to detect or that might be missed as they are hand-cut by the craftsman.

As a result, the technology enables the accurate placement of facets, with each sized and polished to a level of perfection not possible before.

“In researching existing systems, isee2 diamond engineers found that when pushed to the current limits of 100x magnification, the image quality that resulted did not provide sufficient detail or definition to meet their specifications,” says Joseph Srodawa, managing director of Overseas Diamonds in the U.S.

Srodawa says isee2 diamonds cut and polished using the new 200x magnification technology will become available to retailers beginning June 2008, with full implementation by September 2008.

Launched in 2002, isee2 diamonds provide a “Birth Certificate” that tracks the diamond from mine to purchaser.

Yahoo Holders Turn Up Heat After Microsoft Deal Talks Fail

Filed under WSJ.com, SAN FRANCISCO - Yahoo Inc. Chief Executive Jerry Yang Monday had to tangle with some big shareholders who were displeased that he didn't reach a deal to sell his company toMicrosoft Corp. at a sweetened price.

At issue was Yahoo's stance in negotiations with Microsoft Saturday that the company was worth $37 per share, while Microsoft said it was prepared to offer $33. Some of Yahoo's major shareholders had by late last week signaled to Yahoo that they were open to a deal around $33 or $34 per share, according to people familiar with the matter.

With Microsoft's withdrawal of its offer Saturday, and a sharp slide in Yahoo shares Monday, some investors are asking why Yahoo didn't work harder to bridge the price gap with Microsoft. Any investor dissatisfaction could potentially feed into calls to unseat Yahoo's board at its next annual meeting or efforts to press Yahoo's directors to go back to Microsoft to try to strike a deal. Yahoo late Monday announced it would hold its annual shareholder meeting on July 3, setting a May 15 deadline to receive any new nominations for Yahoo directors.

A manager at another major shareholder said the firm was "comfortable with Microsoft's price," and had communicated to Yahoo last week that it would accept a deal in the approximate range of $33 or $34 per share.

A manager at a third major Yahoo shareholder said some investors were pressing Yahoo to "reopen the dialogue" with Microsoft about possible deals. "The shareholders are pretty irate," the manager said.

Yahoo's Mr. Yang and the company's chairman Monday defended Yahoo's actions. "Listening to shareholders is very important but you'll get lots of points of view," said Yahoo Chairman Roy Bostock in a joint interview with Mr. Yang Monday. "In the final analysis the independent directors of the board had to make a determination of what our position would be when we put the first price on the table," he added, saying that Yahoo's board had not named any price before Saturday.

"We said, considering all of these hard data, what we should do is say we think a fair value for the company is $37. It was not a take-it-or-leave it statement," Mr. Bostock said. He said Microsoft did not respond to that price other than to withdraw its offer.

Mr. Yang in the interview disputed the idea that Yahoo didn't want to sell to Microsoft. "There should be no question about our willingness" to sell to Microsoft, he said, speaking of himself and Mr. Filo. "We as a company and I personally have always been open to a deal with Microsoft and I hope that the last few days it was clear that we have shown we're willing to do a deal with Microsoft but that we couldn't get to an agreement on price."

As expected, Yahoo's stock took a pummeling in the stock market Monday, falling $4.20, or 14.7%, to $24.47. Analysts said the shares, which traded at $19.18 on Jan. 31 prior to Microsoft's initial $31 per share offer, were supported from falling to the same level by the possibility that Microsoft could revive its Yahoo pursuit, and that Yahoo was poised to announce a search advertising pact with Google. While a deal wasn't finalized as of Monday afternoon, Yahoo and Google were vetting a potential agreement with antitrust regulators, according to a person close to Google. Mr. Yang said he was taking Mr. Ballmer's letter withdrawing the Microsoft offer "at face value for what it is." He acknowledged facing pressure now to deliver on Yahoo's plans for its business. "There is no celebrating here," he said. "We have a lot of work ahead of us."