Of the 105 closures, 90 are underperforming locations and 50 ofthem are kiosk shops. The units will close as leases expire, andmanagement expects to end the fiscal year with 2,145 stores, downfrom its current 2,167.


Zale will reduce capital spending from $85 million in thecurrent fiscal year to $45 million in next year's 12-month period.Additionally, the company is also eliminating 140 current and 85open staff positions, or about 20% of its headquarters-basedemployees.


Due to these measures, executives are forecasting annualizedsavings of $65 million, $5 million of which will be realized inthis fiscal period's fourth quarter.


In December, Zale named Neal Goldberg, a former Children's Placeexecutive, president and chief executive officer. "We intend tomake Zale into a more nimble and efficient organization," he saidFeb. 21. We remain focused on the generation of free cash flow,achieving a high return on capital and maintaining financial rigorand discipline overall."

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