May 16, 2014, 1:07 PM
- The efforts of Signet (SIG +0.1%) to acquire Zale (ZLC +0.8%) could be done in by deal adviser Bank of America Merrill Lynch's failure to disclose a conflict of interest.
- BAML delivered a presentation to Signet last October in which it recommended to the company it make an offer to buy Zale for $17 to $21 per share. The investment bank then turned around to rep Zale in the merger talks while disclosing only "limited" prior relationships with Signet, according to The New York Times.
- The apparent foul-up gives TIG Advisors even more ammunition to convince other Zale shareholders to oppose the merger.
Feb. 19, 2014, 12:45 PM
Feb. 19, 2014, 9:13 AM
Feb. 19, 2014, 7:37 AM
- Signet (SIG) confirms its acquisition of Zale (ZLC) in a transaction valued at close to $1.4B. Large Zale stakeholder Golden Gate Capital is on board with the deal.
- The company expects to finance the transaction through bank debt and a securitization of its accounts receivable portfolio.
- The merger is expected to be accretive in the first year at a high single-digit percentage.
- What to watch: Zale's international business and strong online business strengthen a couple of areas Signet had room to improve. The combined company will also yield some improved pricing power.
- Premarket action: ZLC +40.8% to $20.99 and SIG +11.0% to $88.
Jan. 10, 2014, 12:09 PM
- Shares of Zale (ZLC +14.2%) pop after the company surprises with its report on holiday sales.
- Comparable-store sales were up only 2% for the two-month period, but the company's margin trend looked strong.
- A read from MasterCard Advisors tipped off two weeks that jewelry would be a retail out-performer.
Dec. 12, 2013, 12:52 PM
Dec. 4, 2013, 5:37 PM
Oct. 3, 2013, 1:16 PM
Oct. 2, 2013, 5:43 PM
Sep. 4, 2013, 1:59 PM
- Shares of Zales (ZLC +4.8%) continue to run after the jeweler's FQ4 beat. The stock is up 49.7% since the company announced results on Aug. 28.
- Diamond jewelers Blue Nile (NILE +3%), Tiffany (TIF +1.9%), and Signet (SIG +0.4%) are up on the day as well and are outperforming the broader S&P retail sector (+0.8%).
Aug. 28, 2013, 12:45 PM
Aug. 28, 2013, 9:11 AM
Aug. 28, 2013, 8:08 AM
- Zale (ZLC) says comparable store sales rose 5.6% during FQ4 led by strong growth at Zales branded stores.
- The retailer improved its gross margin rate by 150 bps to 53.1% as the higher sales count more than offset expense increases.
- ZLC +10.5% premarket.
May 22, 2013, 12:52 PM
May 22, 2013, 9:17 AM
May 22, 2013, 8:54 AM
More on Zale's (ZLC) FQ3: As in FQ2, the company reiterates its expectation of a profitable full year. Same-store sales rise 2.6% (constant currency basis and adjusting for February 29) while gross margin and operating margin expand 130 and 80 basis points respectively. YTD earnings are essentially double what they were after two quarters in 2012. The company realizes a $4M reduction in interest rate expense thanks to last year's refinancing. Additionally, ZLC appoints Terry Burman chairman of the board. Shares +26.3% premarket. (PR)| May 22, 2013, 8:54 AM