The company opened 17 new stores in the first quarter of last year. "We are aggressively opening new stores," said Betsy Burton, president and CEO. "If you can have them open for Q2, you have them for your biggest quarter."

In addition, the chain will remodel, refurbish or relocate 41 locations, double the number of stores redone in the first quarter of last year.

Old inventory will continue to be liquidated through the first quarter, then put away for the push on full-price sales. The company also is pushing Internet sales, relaunching the web site for Bailey Banks & Biddle in the fall, and debuting a site for Gordon's in the spring.

For the fourth quarter of 2006, Zale reported sales of $490.7 million, up 3.9% from the previous year. Comparable store sales rose 3.5% over the previous year. The chain posted a net loss of $26.4 million for the quarter. The company spent much of the last quarter liquidating some inventory and closing 30 Bailey Banks & Biddle stores.

For fiscal 2006, Zale's revenues rose 2.3% to $2.44 billion. That figure includes revenues from 30 Bailey Banks & Biddle units. Full fiscal year comparable store sales, which don't include those stores, increased 1.6%. Earnings for the year were $54.5 million, compared $106.8 million the previous year.

Zale now operates 2,350 retail locations in the United States, Canada and Puerto Rico, under the names Zales Jewelers, Zales Outlet, Gordon's Jewelers, Bailey Banks & Biddle, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda.