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Zale Corporation (NYSE:ZLC) is expected to report Q4 earnings Thursday, Aug. 28 before market open, with a conference call scheduled for 9:00 am ET.

Guidance

Analysts are looking for a loss of (57c) on revenue of $448.91M. The consensus range is (66c) to (45c) for EPS, and revenue of $443.2M to $452.62M, according to First Call.

Analyst Views

Instead of spending on luxury items, consumers are flocking to wholesale clubs and discount apparel chains. Additionally, several retailers, hurt by a slow economy where consumers are hesitating to spend on discretionary items such as jewelry, have already declared bankruptcy and analysts believe more may be on the way due to the tightening credit markets and consumer spending slump. Analysts and investors will look for comments from Zale, which recently named Theo Killion as President and Steve Larkin as Chief Marketing Officer, on the looming holiday season, traditionally a crucial time in the year for gift items such as jewelry. Further, Zale faces steep holiday competition from Whitehall Jewelers' court-ordered liquidation sale.

Source: Earnings Preview: Zale Corp.