MIRA INFORM REPORT

Report Date :

16.10.2012

IDENTIFICATION DETAILS

Name :	ZALE CORPORATION

Registered Office :	901 West Walnut Hill Lane, 901 W. Walnut Hill Lane, Irving, TX 75038-1003

Country :	United States

Financials (as on) :	31.07.2011

Year of Establishment :	1993

Legal Form :	Public Parent Company

Line of Business :	retailer of fine jewelry

No. of Employees :	12,600

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

Payment Behaviour :	No Complaints

Litigation :	Clear

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30^th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

United States

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

UNITED STATES - ECONOMIC OVERVIEW

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $48,100. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income. Imported oil accounts for nearly 55% of US consumption. Oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices increased another 50% between 2006 and 2008. In 2008, soaring oil prices threatened inflation and caused a deterioration in the US merchandise trade deficit, which peaked at $840 billion. In 2009, with the global recession deepening, oil prices dropped 40% and the US trade deficit shrank, as US domestic demand declined, but in 2011 the trade deficit ramped back up to $803 billion, as oil prices climbed once more. The global economic downturn, the sub-prime mortgage crisis, investment bank failures, falling home prices, and tight credit pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, in October 2008 the US Congress established a $700 billion Troubled Asset Relief Program (TARP). The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP; total government revenues from taxes and other sources are lower, as a percentage of GDP, than that of most other developed countries. The wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the US budget deficit and public debt - through 2011, the direct costs of the wars totaled nearly $900 billion, according to US government figures. In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform bill that will extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on health care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight. Long-term problems include inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, sizable current account and budget deficits - including significant budget shortages for state governments - energy shortages, and stagnation of wages for lower-income families.

Source : CIA

Company name & address

Zale Corporation

901 West Walnut Hill Lane

901 W. Walnut Hill Lane

Irving, TX 75038-1003

United States

Tel: 972-580-4000

Fax: 972-580-5266

Toll Free: (800) 311-5393

Web: www.zalecorp.com

Synthesis

Employees: 12,600

Company Type: Public Parent

Corporate Family: 1766 Companies

Traded: New York Stock Exchange: ZLC

Incorporation Date: 1993

Auditor: Ernst & Young LLP

Financials in: USD (Millions)

Fiscal Year End: 31-Jul-2011

Reporting Currency: US Dollar

Annual Sales: 1,742.6 1

Net Income: (112.3)

Total Assets: 1,189.9 2

Market Value: 87.3

(27-Apr-2012)

Business Description

Zale Corporation through its wholly owned subsidiaries, is a specialty retailer of fine jewelry. As of July 31, 2011, it operated 1,163 specialty retail jewelry stores and 666 kiosks located mainly in shopping malls throughout the United States of America, Canada and Puerto Rico. The Company operates in three segments: Fine Jewelry, Kiosk Jewelry and All Other. Fine Jewelry is comprised of five brands, focused on the consumer as its core customer target. Zales, is a brand in jewelry retailing in the United States. Kiosk Jewelry operates under the brand names Piercing Pagoda, Plumb Gold, and Silver and Gold Connection (collectively, Piercing Pagoda) through mall-based kiosks, and targets the opening price point jewelry customer. The Company provides insurance and reinsurance facilities for various types of insurance coverage, which are marketed to its private label credit card customers, through Zale Indemnity Company, Zale Life Insurance Company, Jewel Re-Insurance Ltd. and ZCSC, LLC. For the six months ended 31 January 2011, Zale Corporation's revenues decreased 5% to $953.5M. Net loss from continuing operations increased 32% to $69.4M. Revenues reflect a decrease in sales. Higher loss reflect the presence of other charges, an increase in depreciation & administration expense and a rise in interest expenses. Zeal corporation, through its wholly owned subsidiaries, is a specialty retailer of fine jewelry

Industry

Industry Retail (Specialty)

ANZSIC 2006: 4253 - Watch and Jewellery Retailing

NACE 2002: 5248 - Other retail sale in specialised stores

NAICS 2002: 44831 - Jewelry Stores

UK SIC 2003: 52484 - Retail sale of jewellery, clocks and watches

US SIC 1987: 5944 - Jewelry Stores

Key Executives

(Emails Available)

Name	Title
Theophlius Killion	Chief Executive Officer and Director
Thomas A. Haubenstricker	Chief Financial Officer, Senior Vice President
Richard A. Lennox	Chief Marketing Officer, Executive Vice President
Matthew W. Appel	Executive Vice President, Chief Administrative Officer
Brad Furry	Senior Vice President, Chief Information Officer

Significant Developments

Topic	#*	Most Recent Headline	Date
Officer Changes	1	Zale Corporation Names Thomas A. Haubenstricker As Chief Financial Officer	12-Oct-2011
Strategic Combinations	2	Zale Corporation Announces Exclusive Partnership For Diamond Fashion Jewelry Under Jessica Simpson Collection	30-Aug-2011
Equity Investments	1	Activist Breeden Cuts Stake In Zale Corporation-Reuters	12-Jun-2011

* number of significant developments within the last 12 months

News

Title	Date
Study: Retail workers' turnover offers some hope Associated Press (447 Words)	7-May-2012
Zale to Announce Third Quarter Fiscal 2012 Results Business Wire (257 Words)	7-May-2012
Six candidates seek role in Garland council's makeover Dallas Morning News (TX) (1653 Words)	29-Apr-2012
WHAT 4-DAY, $6,000 SHOPPING SPREE BUYS: POLICE DETAIL WHAT THEY SAY TWO TEENAGERS SPENT USING A STOLEN CREDIT CARD. Post-Standard (Syracuse, NY) (585 Words)	28-Apr-2012
Express Announces Theo Killion Appointment To The Board Associated Press (697 Words)

Financial Summary

As of 31-Jan-2012

Key Ratios Company Industry

Current Ratio (MRQ) 1.93 2.11

Quick Ratio (MRQ) 0.15 0.61

Debt to Equity (MRQ) 2.10 0.58

Sales 5 Year Growth -4.15 9.32

Net Profit Margin (TTM) % -2.52 5.93

Return on Assets (TTM) % -3.66 8.25

Return on Equity (TTM) % -20.35 15.46

Stock snapshot

Traded: New York Stock Exchange: ZLC

As of 27-Apr-2012

Financials in: USD

Recent Price	2.71	EPS	-3.34
52 Week High	6.90	Price/Sales	0.05
52 Week Low	2.06	Price/Book	0.41
Avg. Volume (mil)	0.38	Beta	3.18
Market Value (mil)	87.29

	Price % Change	Rel S&P 500%
4 Week	-12.30%	-11.98%
13 Week	-7.19%	-12.94%
52 Week	-24.93%	-27.22%
Year to Date	-28.87%	-36.26%

1 - Profit & Loss Item Exchange Rate: USD 1 = USD 1

2 - Balance Sheet Item Exchange Rate: USD 1 = USD 1

Corporate Overview

Location

901 West Walnut Hill Lane

901 W. Walnut Hill Lane

Irving, TX, 75038-1003

Dallas County

United States

Tel: 972-580-4000

Fax: 972-580-5266

Toll Free Tel: (800) 311-5393

Web: www.zalecorp.com

Quote Symbol - Exchange

ZLC - New York Stock Exchange

Sales USD(mil): 1,742.6

Assets USD(mil): 1,189.9

Employees: 12,600

Fiscal Year End: 31-Jul-2011

Industry: Retail (Specialty)

Incorporation Date: 1993

Company Type: Public Parent

Quoted Status: Quoted

Chief Executive Officer

and Director: Theophlius Killion

Company Web Links

Company Contact/E-mail

Corporate History/Profile

Employment Opportunities

Executives

Financial Information

Home Page

Investor Relations

News Releases

Products/Services

Contents

Industry Codes

Business Description

Product Codes

Financial Data

Market Data

Key Corporate Relationships

Additional Information

Industry Codes

ANZSIC 2006 Codes:

4251 - Clothing Retailing

4253 - Watch and Jewellery Retailing

NACE 2002 Codes:

5242 - Retail sale of clothing

5248 - Other retail sale in specialised stores

NAICS 2002 Codes:

44831 - Jewelry Stores

448150 - Clothing Accessories Stores

US SIC 1987:

5632 - Women's Accessory and Specialty Stores

5944 - Jewelry Stores

UK SIC 2003:

52423 - Retail sale of other women's clothing

52484 - Retail sale of jewellery, clocks and watches

Business Description

Zale Corporation, incorporated in 1993, through its wholly owned subsidiaries, is a specialty retailer of fine jewelry. As of July 31, 2011, the Company operated 1,163 specialty retail jewelry stores and 666 kiosks located mainly in shopping malls throughout the United States of America, Canada and Puerto Rico. The Company operates in three segments: Fine Jewelry, Kiosk Jewelry and All Other.

Fine Jewelry

Fine Jewelry is comprised of five brands, focused on the consumer as its core customer target. Each brand specializes in fine jewelry and watches, with merchandise and marketing emphasis focused on diamond products. Zales Jewelers is its national brand in the United States providing moderately priced jewelry to a range of customers. Zales Outlet operates in outlet malls and neighborhood power centers and capitalizes on Zales Jewelers' national advertising. Gordon's Jewelers is a regional jeweler. Peoples Jewellers, provides customers with an affordable assortment and an accessible shopping experience. Mappins Jewellers offers Canadian customers a selection of merchandise from engagement rings to fashionable and contemporary fine jewelry. In addition, it has expanded its brand reach through the e-commerce sites, www.zales.com, www.zalesoutlet.com, www.gordonsjewelers.com and www.peoplesjewellers.com.

Zales, is a brand in jewelry retailing in the United States. As of July 31, 2011, it operated 650 stores in 50 states and Puerto Rico with an average store size of 1,686 square feet. As of July 31, 2011, Gordon's operated 168 stores in 27 states and Puerto Rico with an average store size of 1,517 square feet. Zales is positioned as The Diamond Store Since 1924 given its emphasis on diamond jewelry in the bridal and fashion segments. Gordon's features items in every jewelry category, including exclusive bridal designs, branded watches, gemstones, gold merchandise, and diamond fashion and solitaire products. During the fiscal year ended July 31, 2011(fiscal 2011), Zales Jewelers' and Gordon's Jewelers' combined revenues accounted for 59 % of its total revenues. During fiscal 211, both brands operate as multi-channel retailers and serve Internet customers through e-commerce sites: www.zales.com and www.gordonsjewelers.com, which accounted for approximately 4% of its total revenues.

During fiscal 2011, in Canada, the Company operated 213 stores in nine provinces. During fiscal 2011, Canadian operations consisted of two brands, Peoples Jewellers and Mappins Jewellers, and accounted for 17 % of its total revenues. The average store size is 1,613 square feet. Beginning in October 2010, Peoples Jewellers serves Internet customers through the e-commerce site, www.peoplesjewellers.com. Peoples Jewellers and Mappins Jewellers are two brand names in Canada. Peoples offers jewelry at affordable prices, attracting a range of Canadian customers. It also offers a range of gold jewelry, gemstone jewelry and watches. Mappins Jewellers differentiates itself by offering exclusive merchandise in its bridal assortments. During fiscal 2011, the Company operated 132 Zales Outlet stores in 35 states and Puerto Rico, sales from which accounted for 10 % of its total revenues. The average store size is 2,360 square feet. The outlet concept has evolved into three differentiated formats: power strip centers, traditional outlet malls and destination centers. Its stores feature items in every jewelry category, including branded watches, gemstones, gold merchandise, and diamond fashion and solitaire products.

Kiosk Jewelry

Kiosk Jewelry operates under the brand names Piercing Pagoda, Plumb Gold, and Silver and Gold Connection (collectively, Piercing Pagoda) through mall-based kiosks, and targets the opening price point jewelry customer. The Company has expanded its presence in Kiosk Jewelry through the e-commerce site, www.pagoda.com. As of July 31, 2011, Piercing Pagoda operated 666 locations in 41 states and Puerto Rico, sales from which accounted for 14% of its total revenues in fiscal 2011. Kiosk Jewelry specializes in gold, silver and non-precious metal products, including entry level diamond merchandise. Kiosk Jewelry offers a range of bracelets, earrings, charms, rings, and 14 karat and 10 karat gold chains, as well as a selection of silver and diamond jewelry. In addition, trained associates perform ear-piercing services on site. Kiosks are generally located in high traffic areas. The kiosk locations average 188 square feet in size.

All Other

The Company provides insurance and reinsurance facilities for various types of insurance coverage, which are marketed to its private label credit card customers, through Zale Indemnity Company, Zale Life Insurance Company, Jewel Re-Insurance Ltd. and ZCSC, LLC. These four companies are the insurers of its customer credit insurance coverage. In addition to providing merchandise replacement coverage for certain perils, credit insurance coverage provides protection to the creditor and cardholder for losses associated with the disability, involuntary unemployment, leave of absence or death of the cardholder. Zale Life Insurance Company also provides group life insurance coverage for its eligible employees.

Zale Indemnity Company, in addition to writing direct credit insurance contracts, has certain discontinued lines of insurance that it continues to service. Credit insurance operations are dependent on its retail sales through its private label credit cards. During fiscal 2011, 36 % of its private label credit card purchasers purchased some form of credit insurance. The Company has entered into a five year Private Label Credit Card Program Agreement with TD Financing Services Inc. (TDFS) to provide financing for its Canadian customers to purchase merchandise through private label credit cards beginning July 1, 2010. In addition, TDFS provides credit insurance for its Canadian customers. During fiscal 2011, the All Other segment accounted for approximately 1% of its total revenues.

The Company competes with Wal-Mart Stores, Inc., J.C. Penney Company, Inc., Signet Jewelers Limited and QVC, Inc

More Business Descriptions

Holding Company; Jewelry Stores

Establishments primarily engaged in the retail sale of any combination of the lines of jewelry, such as diamonds and other precious stones mounted in precious metals as rings, bracelets, and broaches; sterling and plated silverware; and watches and clocks.

We are a leading specialty retailer of fine jewelry in North America. At April 30 2011 we operated 1173 fine jewelry stores and 673 kiosk locations primarily in shopping malls throughout the United States of America Canada and Puerto Rico.

Zale Corporation (Zale) is one of the leading specialty retailers of fine jewelry in the US. It offers a wide range of jewelry items through company-owned specialty stores and website. It also retails through the websites, zales.com and gordonsjewelers.com. It operates under different brands. Through 1,829 stores.The company operates through three reportable segments, namely Fine Jewelry, Kiosk Jewelry and all other. The Fine Jewelry segment operates under the brands namely, Zales Jewelers, Gordonâ€™s Jewelers, Peoples Jewellers, Mappins Jewellers and Zales Outlet. Zales Jewelers operates 650 stores and each store covers an average space 1,688 square feet. It is the flagship brand in the US. Gordonâ€™s Jewelers operates 168 stores, covering an average store size of 1,517 square feet. The company operates these brands in the US and Puerto Rico. Peoples Jewellers and Mappins Jewellers offers diamond jewelry, gold jewelry, gemstone jewelry and watches through 213 stores in Canada. Its average store size is 1,613 square feet. Zales Outlet operates 132 stores, covering an average store size of 2,360 square feet. The Zales Outlet store offers branded watches, gemstones, gold merchandise, diamond jewelry and solitaire products. For the fiscal year ended July2011, the Fine Jewelery segment has generated a revenue of $1490.647m, indicating an increase of 8.13%, compared to that of the fiscal year end 2010. For the fiscal year ended July 2011, the Fine Jewelry segment accounted for 85.54% of the company's total revenue. The Kiosk Jewelry segment operates under the brands namely, Piercing Pagoda, Plumb Gold, and Silver and Gold Connection. The segment operates 666 stores, covering an average space of 188 square feet and specializes in gold, silver and non precious metal products products. Kiosks are located in high traffic areas that are easily accessible and visible. For the fiscal year ended July 2011, the Kiosk Jewelry segment generated a revenue of $239.231m, indicating an increase of 5.77%, compared to that of the fiscal year ended 2010. For the fiscal year ended July 2011, the Kiosk segment accounted for 13.73% of the company's total revenue. The all Other segment provides insurance and reinsurance services through four companies. The companies including Zale Indemnity Company, Zale Life Insurance Company and Jewel Re-Insurance Ltd provides various insurance coverage and these services are marketed to private label credit card customers. Zale Life Insurance Company also provides group life insurance coverage for the companyâ€™s employees. For the fiscal year ended July 2011, the Other segment generated a revenue of $12.685m, indicating an increase of 9.25%,compared to the fiscal year end 20101. For the fiscal year ended July 2011, the Other segment accounted for for 0.73% of the total company's total revenue. The company has its operations in the US, Canada and Puerto Rico through its stores. In the US, the company operates in 50 states, 35 states and 36 states under the brands Zales Jewelers, Gordonâ€™s Jewelers and Zales Outlet respectively. These three brands also operate in Puerto Rico. In Canada the company operates in nine provinces under the banners Peoples Jeweleries and Mappins Jewelers. In the year 2011, the company has decided to join in the Russell 3000 index. Russell indexes are used as a benchmark by investment managers for both active and passive investment strategies. The company's Zale Cananda has also entered into an agreement with Alliance Data's Canadian coalition loyalty business. This will enable the company's Peoples Jewellers and Mappins Jewellers brands, to participate as the exclusive sponsors in the fine jewelry category in the Canadian AIR MILES reward Program.

Zale Corporation (Zale) is a specialty retailer of jewelry items.The company offers jewelry, watches, gemstones and other such items, with more focus on diamond products. The company through its subsidiaries operates 1,163 specialty retail jewelry stores and 666 kiosks primarily located at shopping malls under different brands. The company sells its products under different brands such as Zales, Zales outlet,Gordon Jewelers, Peoples, Mappins,Piercing Pagoda and Silver and Gold collection. Zale also provides insurance coverage and operates distribution facilities. Zale Corporation along with its subsidiaries principally operates in the US, Canada and Puerto Rico. The company is headquartered at Irving, Texas, United States.The company reported revenues of (U.S. Dollars) USD 1,742.56 million during the fiscal year ended July 2011, an increase of 7.81% over 2010. The operating loss of the company was USD 27.87 million during the fiscal year 2011, as compared to an operating loss of USD 115.45 million during 2010. The net loss of the company was USD 112.31 million during the fiscal year 2011, as compared to a net loss of USD 93.67 million during 2010.

Zale Corporation had its beginning in 1924 when Morris and William Zale opened the first Zales Jewelers store in Wichita Falls, Texas. Zale Corporation is a specialty retailer of fine jewelry that operates a number of different chains, such as Zales Jewelers, Zales Fine Jewelry Outlet, Gordon's Jewelers, Bailey Banks & Biddle Fine Jewelers, Peoples Jewelers, Mappins Jewelers and Piercing Pagoda. The company operates more than 2,300 locations throughout the United States, Canada and Puerto Rico. In 2005, Zale reported revenues of more than $2 billion. Zale Corporation is publicly traded on the New York Stock Exchange under the symbol ZLC and is headquartered in Irving, Texas.

Provider of jewelry retail sales services, cleaning and repair services. Parent/holding company with units involved in online jewelry sales services, jewelry retail sales, and ear piercing services.

Product Codes

Product Code Product Description

ZZZ-HC Parent/Holding company

Financial Data

Financials in:	USD(mil)

Revenue:	1,742.6
Net Income:	-112.3
Assets:	1,189.9
Long Term Debt:	395.5
Total Liabilities:	977.1
Working Capital:	0.8

Date of Financial Data:	31-Jul-2011

1 Year Growth

7.8%

1.6%

Market Data

Quote Symbol:	ZLC
Exchange:	New York Stock Exchange
Currency:	USD
Stock Price:	2.7
Stock Price Date:	04-27-2012
52 Week Price Change %:	-24.9
Market Value (mil):	87,293.7

SEDOL:	2988900
ISIN:	US9888581066

Equity and Dept Distribution:
Common Stock $.01 Par, 6/11, 150M auth., 32,156,036 issd., less net of shs. in Treas. @ $465.6M. Insiders own 0.59%. PO:NA. *NOTE:6/96, Zale Corp. began trading on the NYSE. 12/93, YE change from March to July. 10/00, Company acq. Piercing Pagoda for $203M & $45M in assumed debt. 6/04, 2-for-1 stock split.

Key Corporate Relationships

Auditor:	Ernst & Young LLP
Bank:	Bank Of America, Jewelmak Inc, Kazanjian & Fogarty Inc, Continental Jewelry Inc, D M Diamond Corp, Zale Corp, Lee, Gabriela , Lazare Kaplan Intl Inc, Lee Jewelry Corp, Goldstar Jewelry

Auditor:	Ernst & Young LLP

Additional Information
ABI Number:	007541139

Strategic Initiatives

Key Organizational Changes

Previously, Killion held senior management positions at Tommy Hilfiger, Limited Brands, Macy's East and the Home Shopping Network. In addition, the company also announced that Gil Hollander, executive vice president and chief sourcing and supply chain officer, has assumed the additional role of chief merchandising officer. Hollander, who has over 35 years of experience in the jewelry industry, joined Zale in September 2000 with the acquisition of Piercing Pagoda and has served in various senior management positions with the company. The company reported that Neal Goldberg, chief executive officer and member of the Board of Directors, William Acevedo, chief stores officer, and Mary Kwan, chief merchandising officer, have left the company, effective immediately. Zale Corporation is a retailer of diamonds and other jewelry products in North America, operating approximately 1,900 retail locations throughout the US, Canada and Puerto Rico, as well as online.

Source: GlobalData, October 8, 2011

Strengths/Weaknesses (SWOT)

Helpful
to achieving the objective

Harmful
to achieving the objective

Internal Origin
(attributes of the organization)

Strengths

· High Recognition in Canada

· Broad Product Offerings

· Strong Market Presence

Weaknesses

· History of Loses

· Closure of Stores

External Origin
(attributes of the environment)

Opportunities

· Growth in E-Retail

· Business Expansion into Other Geographies

· Rising Demand for Luxury Goods in Wealthy Nations

Threats

· Changing Consumer Behavior

· Seasonality of the Business

· Highly Competitive Market

Overview

Zale Corporation (Zale), a specialty retailer of fine jewelry, operates 1,163 speciality stores and 666 kiosks across the US, Canada and Puerto Rico.The companyâ€™s strong market presence and broad product offerings enables the growth. However,the history of loses and closure of stores might be a concern. Where as, rising demand for luxury goods in the wealthy nations and expansion into other markets ensures a strong future. While,growing competition and seasonality of the business may effect the companyâ€™s business.

Strengths

High Recognition in Canada

The company operates in Canada through 213 stores in nine provinces under the famous brands Peoples Jewellers and Mappins Jewellers. In the speciality jewellery retail segment in Canada, the company's brands enjoys largest market share. For the fiscal year ended July 2011, the Canadian segment generated a revenue of approximately $335m, accounting for approximately 17% of the company's total revenue. Under the Peoples Jewelleries brand, the company offers jewellery at affordable prices. The Canadian people emphasizes the diamond business with the trade name â€œPeople the Diamond Storeâ€.The Mappins Jewellers offers merchandise in bridal assortment and branded jewellery lines. The company with its aggressive television campaign and wide array of gold jewellery, watches and exclusive merchandise has a clear competitive edge.

Broad Product Offerings

Zale offers a wide product portfolio to its customers, serving a wide range of customers with different income levels. Zale operates the jewelry retail segment through two divisions â€“ Fine Jewelry and Kiosk Jewelry. Focusing on the value-oriented customers, the Fine Jewelry segment offers brands like Zales Jewelers, Gordon's Jewelers, Peoples Jewellers and Mappins Jewellers. These brands carry gold merchandise, gemstones, branded watches and diamond fashion and solitaire products. The Kiosk Jewelry segment operates through mall-based kiosks under the brands, Piercing Pagoda, Plumb Gold and Silver and Gold Connection. These brands offer a range of rings, bracelets, charms, earrings and 14 karat and 10 karat gold chains. The brands Zales Outlet caters to the higher-income customers whereas Gordonâ€™s Jewelers and Mappins Jewellers offers moderately priced jewelry. With wide product portfolio the company is able to meet the requirements of large customer groups.

Strong Market Presence

Zale has gained a strong foothold in the North American region through its specialty stores as well as online presence. It has been operating in the market since 1924 and this has enhanced its image in the market. This strong presence in the market helps the company increase its proximity with the customers and increase its market share. Its strong retail network also helps the company generate economies of scale during sourcing its materials. The company operates in total1829 stores out of which 1,163 are specialty retail jewelery stores and 666 are Kiosks. The company operates 213 stores in Canada under the brand name Peoples Jewelers and Mappins Jewelers. Further, the company also operates in Puerto Rico. In addition to the brick-and-mortar stores, the company also operates online store format through its e-commerce websites, zales.com, gordonsjewelers.com,peoplesjewellers.com and and zalesoutlet.com. Strong presence in the market helps the company in catering to huge population and helps in increasing the revenues.

Weaknesses

History of Loses

Zale's incurred operating loss of $27.87m in 2011, as compared to an operating loss of $115.45m in 2010 . Besides, the company reported operating loss of $208.96m during the fiscal 2009. Furthermore, the companyâ€™s operating expenses stood at $1770.43m, $1731.75m and $1988.71m in 2011, 2010 and 2009, respectively. In the fiscal year 2011 , the companyâ€™s operating expenses increased by 2.23%, compared to the fiscal year 2010. In addition, the companyâ€™s net losses stood at $112.31m, $93.67m and $189.50 m in 2011, 2010 and 2009. Besides, the company had negative operating income growth for the last three years. This indicates inefficient cost management and a weak pricing strategy by the company.

Closure of Stores

Zale has been going through tough phase from the past few years. The under performance of the stores has lead the company to close it stores. For the fiscal year 2011, the company has closed 72 stores of which 59 are from Fine Jewellery and 13 are from Kiosks Jewellery. Zale has closed 47 stores and in the fiscal year 2010 and closed 218 stores in the fiscal year 2009. Though, the company has opened few stores in the respective years, the number of stores were meager compared to the closure of stores. The continuous closure of stores reflects the weak performance of the company. The closure of stores gives negative impression to the consumers, which might effect the financial position of the company.

Opportunities

Growth in E-Retail

The company has the potential to reap the benefits amidst the growing online shopping trend. It stands to benefit from the growth trend of e-retail, which is supported by rising internet penetration and increasing familiarity to online shopping. Now, more and more customers prefer to shop online and place their orders through credit cards, thereby avoiding the time consuming journey and billing queues. Online jewelery retail sales in the United States reached $63.4 billion in the year 2010, an increase of 7.7% compared to that of the previous year.With more number of people using internet, online shoppers are bound to increase. The company with its e-commerce can avail the opportunity tap the market.

Business Expansion into Other Geographies

The company has an opportunity to expand its operations into other markets. It can venture into other geographic locations, which will provide the company with new revenue generating market segments and also protect it from any economical and political risk associated with the existing markets. It can expand its operations into emerging markets such as the Asian markets and benefit from the increasing disposable incomes in these markets. It can concentrate on the BRIC countries and the action is expected to shift to India, being the fastest growing luxury market, growing at 25% and is expected to maintain these rates for the next 10 years. The Indian luxury jewellery market is estimated to be $ 4.67 billion and this forms only 2% of the global share. China is expected to become world's largest luxury market in five to seven years. China with 25% of the current market share is expected to reach 29% of global luxury product consumption by 2015. The growth of luxury markets is on the basis of GDP per-capita growth and the High Networth Individuals in a (HNI's) country. Factors like Consumer Attitudes, Real Estate, and Regulatory Environment are important for the growth of luxury market and these are improving in the BRIC countries.

Rising Demand for Luxury Goods in Wealthy Nations

The company can cash on the rising demand for luxury goods in wealthy nations and generate higher revenues. Zaleâ€™s broad jewelry offerings in the premium category provide a huge scope for the company to drive its sales. The demand for premium and luxury goods has been on a rise in the wealthy nations including the US, the UK and Canada. The wealthy customers in these regions have been witnessing a constant increase in their wealth since the past 30 years. The demand for luxury goods is expected to reach $307.3 billion by 2015. With established brand value and decent network of stores, the company further enhance its business..

Threats

Changing Consumer Behavior

The company faces threat due to the changing consumer behavior and might result in declining revenues. Due to recessionary economy, consumers are left with lower disposable incomes and tending to reduce their discretionary shopping. This trend may adversely affect the sales and margins of retailers such as this one. With the economy in doldrums, the customers might not be in a position or might not show interest in buying the jewellery. This trend might effect the company's performance.

Seasonality of the Business

The company faces the threat of seasonal business because diamonds and jewelry, being in the luxury goods segment, are subject to seasonal fluctuations. Its quarterly sales are more dependent on the various gift giving holidays like Valentineâ€™s Day, Motherâ€™s Day and Christmas/New Year. Generally, the second quarter of the company i.e. November to January generates the maximum revenues while the fourth quarter generates the minimum. Anticipating increased sales in a quarter also increases the operating expenses, which includes higher inventory, high shipping cost and additional staff. Being the discretionary purchase items, the sales are also dependent on various macroeconomic factors like market downturns, employment and salary levels, tax rates and credit availability. Any reduction in consumer spending will have a major impact on the companyâ€™s revenues. As a result, it may lead to huge annual losses as the retailer cannot compensate for the same in other quarters.

Highly Competitive Market

The company faces intense competition from various players in the retail jewelry segment and poses a threat to the companyâ€™s existence. The competive factors are innovation in product designs and good service. The companyâ€™s competitors include independent jewelry stores, retail jewelry store chains like Tiffany & Co., online retailers such as Blue Nile, Amazon.com and online auction sites like eBay. It also faces competition from department stores and discount stores such as Nordstrom, Neiman Marcus and Wal-Mart. Since many of its competitors have a longer operating history, greater brand recognition, established customer base and supplier relationships and greater financial resources, it becomes difficult for Zale to compete with them

Credit Report as of 11/01/2011

Location
901 W Walnut Hill Ln Irving, TX 75038-1001 United States

County:	Dallas
MSA:	Dallas, TX

Phone:	972-580-5500
Fax:	972-580-5266
URL:	http://zalecorp.com

ABI^©:	007541139

Annual Sales:	$1,742,563,000 (USD)
Employees:	12,600

Facility Size(ft²):	40,000+
Facility Own/Lease:	Lease

Business Type:	Public
Location Type:	Headquarter

Ticker:	ZLC
Exchange:	NYSE
Primary Line of Business:
SIC:	5944-09
NAICS:	448310 - Jewelry Stores
Secondary Lines of Business:
NAICS:	522291 - Consumer Lending
SICs:	3911-01 -
	6141-02 -
	8742-13 -
	339911 - Jewelry, Except Costume, Mfg
	541613 - Marketing Consulting Svcs

Similar Businesses in the Area *

Zales The Diamond Store

901 W Walnut Hill Ln

Irving, TX 75038-1001

Gordon's Jewelers

901 W Walnut Hill Ln

Irving, TX 75038-1001

Jeweler

7601 N Macarthur Blvd Ste: 130

Irving, TX 75063-7540

Graceline Premier

1607 Dowling Dr

Irving, TX 75038-5947

Piercing Pagoda

901 W Walnut Hill Ln

Irving, TX 75038-1001

Premier Designs Inc

1551 Corporate Dr

Irving, TX 75038-2498

Gold N Carats

7601 N Macarthur Blvd Ste: 130

Irving, TX 75063-7540

* Similar Businesses are defined as the closest businesses sharing the same six-digit primary SIC code ( 5944-09) regardless of size.

Closest Neighbors

Zales The Diamond Store

901 W Walnut Hill Ln

Irving, TX 75038-1001

Residence Inn

950 W Walnut Hill Ln

Irving, TX 75038-2684

Piercing Pagoda

901 W Walnut Hill Ln

Irving, TX 75038-1001

Family Center/Zales

911 W Walnut Hill Ln

Irving, TX 75038-2614

Gordon's Jewelers

901 W Walnut Hill Ln

Irving, TX 75038-1001

Corporate Family	Corporate Structure News:
	Zale Corporation
Zale Corporation Total Corporate Family Members: 1766 Excluded Small Branches and/or Trading Addresses: 1508 (Available via export)

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Zale Corporation	Parent	Irving, TX	United States	Retail (Specialty)	1,742.6	12,600
Zales The Diamond Store	Subsidiary	Irving, TX	United States	Retail (Specialty)		1,000
Zales The Diamond Store	Branch	Burnsville, MN	United States	Retail (Specialty)	3.8	16
Zales The Diamond Store	Branch	Alexandria, LA	United States	Retail (Specialty)	3.6	15
Zales The Diamond Store	Branch	Sugar Land, TX	United States	Retail (Specialty)	3.6	15
Zales The Diamond Store	Branch	Brooklyn, NY	United States	Retail (Specialty)	3.3	14
Zales The Diamond Store	Branch	Joplin, MO	United States	Retail (Specialty)	3.3	14
Zales The Diamond Store	Branch	Aiea, HI	United States	Retail (Specialty)	3.3	14
Zales The Diamond Store	Branch	Flushing, NY	United States	Retail (Specialty)	3.1	13
Zales The Diamond Store	Branch	Russellville, AR	United States	Retail (Specialty)	3.1	13
Zales The Diamond Store	Branch	Braintree, MA	United States	Retail (Specialty)	2.9	12
Zales The Diamond Store	Branch	San Antonio, TX	United States	Retail (Specialty)	2.9	12
Zales The Diamond Store	Branch	Reno, NV	United States	Retail (Specialty)	2.9	12
Zales The Diamond Store	Branch	Orlando, FL	United States	Retail (Specialty)	2.9	12
Zales The Diamond Store	Branch	Midland, TX	United States	Retail (Specialty)	2.9	12
Zales The Diamond Store	Branch	Temecula, CA	United States	Retail (Specialty)	2.9	12
Zales The Diamond Store	Branch	Oklahoma City, OK	United States	Retail (Specialty)	2.9	12
Zales The Diamond Store	Branch	Fayetteville, NC	United States	Retail (Specialty)	2.9	12
Zales The Diamond Store	Branch	Garden City, NY	United States	Retail (Specialty)	2.9	12
Zales The Diamond Store Outlet	Branch	Aurora, IL	United States	Retail (Specialty)	2.4	12
Zales The Diamond Store	Branch	Tukwila, WA	United States	Retail (Specialty)	2.6	11
Zales The Diamond Store	Branch	Branson, MO	United States	Retail (Specialty)	2.6	11
Zales The Diamond Store	Branch	Hagerstown, MD	United States	Retail (Specialty)	2.6	11
Zales The Diamond Store	Branch	Birmingham, AL	United States	Retail (Specialty)	2.6	11
Zales The Diamond Store	Branch	Amarillo, TX	United States	Retail (Specialty)	2.6	11
Zales The Diamond Store	Branch	Las Vegas, NV	United States	Retail (Specialty)	2.6	11
Zales The Diamond Store	Branch	Sevierville, TN	United States	Retail (Specialty)	2.6	11
Zales The Diamond Store	Branch	Smithfield, NC	United States	Retail (Specialty)	2.6	11
Zales The Diamond Store	Branch	Livingston, NJ	United States	Retail (Specialty)	2.6	11
Zales The Diamond Store	Branch	Escondido, CA	United States	Retail (Specialty)	2.6	11
Zales The Diamond Store	Branch	Lawton, OK	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Corpus Christi, TX	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Bismarck, ND	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Columbia, MD	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Fredericksburg, VA	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Indianapolis, IN	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Appleton, WI	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Waco, TX	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Laredo, TX	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Columbus, OH	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Shenandoah, TX	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	New York, NY	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Chicago, IL	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Paramus, NJ	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Auburn, MA	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Manchester, CT	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Auburn Hills, MI	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Dawsonville, GA	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Sunrise, FL	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Westbury, NY	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Lawton, OK	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Rochester, NY	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Galesburg, IL	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Forsyth, IL	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Oklahoma City, OK	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Dallas, TX	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Brooklyn, NY	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Albuquerque, NM	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	North Charleston, SC	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Houston, TX	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Topeka, KS	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Las Vegas, NV	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Sacramento, CA	United States	Retail (Specialty)	2.4	10
Zales The Diamond Store	Branch	Carlsbad, CA	United States	Retail (Specialty)	2.4	10
Zales Outlet Southlake	Branch	Southlake, TX	United States	Natural Gas Utilities	10.7	9
Zales The Diamond Store	Branch	Springfield, MO	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	San Antonio, TX	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Miami, FL	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Elyria, OH	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Springfield, IL	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	San Angelo, TX	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	College Station, TX	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	El Paso, TX	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	New York, NY	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	North Wales, PA	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Memphis, TN	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Waldorf, MD	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Woodbridge, VA	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Poughkeepsie, NY	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Exton, PA	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Gurnee, IL	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Concord, NC	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Hershey, PA	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Flemington, NJ	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Louisville, KY	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Wayne, NJ	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Selinsgrove, PA	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	St Joseph, MO	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Palm Desert, CA	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Cerritos, CA	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Happy Valley, OR	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Winchester, VA	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Athens, GA	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Palm Beach Gdns, FL	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	La Crosse, WI	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Jefferson City, MO	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Las Vegas, NV	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Mansfield, TX	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Waco, TX	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Peru, IL	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Omaha, NE	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Fort Wayne, IN	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Dallas, TX	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store Outlet	Branch	Central Valley, NY	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Grove City, PA	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Bloomington, IL	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	King Of Prussia, PA	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	West Hartford, CT	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Toledo, OH	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	West Nyack, NY	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Williamsburg, VA	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	San Bernardino, CA	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Arcadia, CA	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Camarillo, CA	United States	Retail (Specialty)	2.1	9
Zales The Diamond Store	Branch	Northridge, CA	United States	Retail (Specialty)	2.1	9
Gordon's Jewelers	Subsidiary	Irving, TX	United States	Retail (Specialty)		800
Gordon's Jewelers	Branch	Deptford, NJ	United States	Retail (Specialty)	3.6	15
Gordon's Jewelers	Branch	Mcallen, TX	United States	Retail (Specialty)	2.6	11
Gordon's Jewelers	Branch	Lakeland, FL	United States	Retail (Specialty)	2.6	11
Gordon's Jewelers	Branch	Sherman, TX	United States	Retail (Specialty)	2.6	11
Gordon's Jewelers	Branch	Memphis, TN	United States	Retail (Specialty)	2.6	11
Gordon's Jewelers	Branch	Wilmington, DE	United States	Retail (Specialty)	2.4	10
Gordon's Jewelers	Branch	Fort Worth, TX	United States	Retail (Specialty)	2.4	10
Gordon's Jewelers	Branch	Houston, TX	United States	Retail (Specialty)	2.4	10
Gordon's Jewelers	Branch	Gallup, NM	United States	Retail (Specialty)	2.4	10
Gordon's Jewelers	Branch	Fayetteville, NC	United States	Retail (Specialty)	2.4	10
Gordon's Jewelers	Branch	Newark, DE	United States	Retail (Specialty)	2.4	10
Gordon's Jewelers	Branch	Houma, LA	United States	Retail (Specialty)	2.4	10
Gordon's Jewelers	Branch	Corpus Christi, TX	United States	Retail (Specialty)	2.4	10
Gordon's Jewelers	Branch	Baton Rouge, LA	United States	Retail (Specialty)	2.4	10
Gordon's Jewelers	Branch	Staten Island, NY	United States	Retail (Specialty)	2.4	10
Gordon's Jewelers	Branch	Springfield, VA	United States	Retail (Specialty)	2.1	9
Gordon's Jewelers	Branch	Midland, TX	United States	Retail (Specialty)	2.1	9
Gordon's Jewelers	Branch	Brandon, FL	United States	Retail (Specialty)	2.1	9
Gordon's Jewelers	Branch	Whitehall, PA	United States	Retail (Specialty)	2.1	9
Gordon's Jewelers	Branch	Plano, TX	United States	Retail (Specialty)	2.1	9
Gordon's Jewelers	Branch	Mobile, AL	United States	Retail (Specialty)	2.1	9
Peoples Jewellers Corp	Subsidiary	North York, ON	Canada	Retail (Specialty)		140
Peoples Jewellers	Branch	Newmarket, ON	Canada	Retail (Specialty)	4.0	13
Peoples Jewellers	Branch	Belleville, ON	Canada	Retail (Specialty)	3.8	12
Peoples Jewellers	Branch	Windsor, ON	Canada	Retail (Specialty)	3.7	12
Peoples Jewellers	Branch	Mississauga, ON	Canada	Retail (Specialty)	3.7	12
Peoples Jewellers	Branch	North York, ON	Canada	Retail (Specialty)	3.7	12
Peoples Jewellers	Branch	Langley, BC	Canada	Retail (Specialty)	3.5	11
Peoples Jewellers	Branch	Burnaby, BC	Canada	Retail (Specialty)	3.1	10
Peoples Jewellers	Branch	Surrey, BC	Canada	Retail (Specialty)	3.1	10
Peoples Jewellers	Branch	St. Albert, AB	Canada	Retail (Specialty)	3.1	10
Peoples Jewellers	Branch	Calgary, AB	Canada	Retail (Specialty)	3.1	10
Peoples Jewellers	Branch	Scarborough, ON	Canada	Retail (Specialty)	3.1	10
Peoples Jewellers	Branch	Toronto, ON	Canada	Retail (Specialty)	3.1	10
Peoples Jewellers	Branch	Winnipeg, MB	Canada	Retail (Specialty)	3.0	10
Peoples Jewellers	Branch	Winnipeg, MB	Canada	Retail (Specialty)	3.0	10
Peoples Jewellers	Branch	Halifax, NS	Canada	Retail (Specialty)	2.9	9
Peoples Jewellers	Branch	Dartmouth, NS	Canada	Retail (Specialty)	2.9	9
Peoples Jewellers	Branch	Nepean, ON	Canada	Retail (Specialty)	2.8	9
Peoples Jewellers	Branch	North York, ON	Canada	Retail (Specialty)	2.8	9
Peoples Jewellers	Branch	Brampton, ON	Canada	Retail (Specialty)	2.8	9
Peoples Jewellers	Branch	Saskatoon, SK	Canada	Retail (Specialty)	2.8	9
Peoples Jewellers	Branch	Sault Ste. Marie, ON	Canada	Retail (Specialty)	2.8	9
Peoples Jewellers	Branch	Pickering, ON	Canada	Retail (Specialty)	2.8	9
Peoples Jewellers	Branch	Oshawa, ON	Canada	Retail (Specialty)	2.8	9
Peoples Jewellers	Branch	Calgary, AB	Canada	Retail (Specialty)	2.8	9
Peoples Jewellers	Branch	Calgary, AB	Canada	Retail (Specialty)	2.8	9
Peoples Jewellers	Branch	Winnipeg, MB	Canada	Retail (Specialty)	2.8	9
Peoples Jewellers	Branch	Calgary, AB	Canada	Retail (Specialty)	2.8	9
Peoples Jewellers	Branch	Lloydminster, AB	Canada	Retail (Specialty)	2.8	9
Peoples Jewellers	Branch	Barrie, ON	Canada	Retail (Specialty)	2.8	9
Peoples Jewellers	Branch	Thornhill, ON	Canada	Retail (Specialty)	2.8	9
Peoples Jewellers	Branch	Nepean, ON	Canada	Retail (Specialty)	2.7	9
Peoples Jewellers	Branch	Sudbury, ON	Canada	Retail (Specialty)	2.7	9
Peoples Jewellers	Branch	Edmonton, AB	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Miramichi, NB	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Ottawa, ON	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Red Deer, AB	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Stratford, ON	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	North Bay, ON	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	London, ON	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	London, ON	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Chilliwack, BC	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Owen Sound, ON	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Richmond Hill, ON	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Markham, ON	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Burlington, ON	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Lethbridge, AB	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Edmonton, AB	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Kingston, ON	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Thunder Bay, ON	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Richmond, BC	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	New Glasgow, NS	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Coquitlam, BC	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	St. John's, NL	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Sarnia, ON	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Brantford, ON	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	North York, ON	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Fort Mcmurray, AB	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Lindsay, ON	Canada	Retail (Specialty)	2.5	8
Peoples Jewellers	Branch	Ottawa, ON	Canada	Retail (Specialty)	2.4	8
Peoples Jewellers	Branch	Guelph, ON	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Cornwall, ON	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Dieppe, NB	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Charlottetown, PE	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Bedford, NS	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Summerside, PE	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Waterloo, ON	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Ottawa, ON	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Orleans, ON	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Moose Jaw, SK	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Burnaby, BC	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Oakville, ON	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Brampton, ON	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Georgetown, ON	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Calgary, AB	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Regina, SK	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Hamilton, ON	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Chatham, ON	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Niagara Falls, ON	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Greenwood, NS	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Hamilton, ON	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Kamloops, BC	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Abbotsford, BC	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Vernon, BC	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	St. John's, NL	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Regina, SK	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Saint John, NB	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Calgary, AB	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Kitchener, ON	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Campbell River, BC	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Windsor, ON	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Victoria, BC	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Truro, NS	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Pembroke, ON	Canada	Retail (Specialty)	2.2	7
Peoples Jewellers	Branch	Welland, ON	Canada	Retail (Specialty)	2.1	7
Peoples Jewellers	Branch	Sydney, NS	Canada	Retail (Specialty)	2.1	7
Peoples Jewellers	Branch	Peterborough, ON	Canada	Retail (Specialty)	2.1	7
Peoples Jewellers	Branch	Concord, ON	Canada	Retail (Specialty)	2.1	7
Peoples Jewellers	Branch	Toronto, ON	Canada	Retail (Specialty)	2.1	7
Peoples Jewellers	Branch	Kelowna, BC	Canada	Retail (Specialty)	2.1	7
Peoples Jewellers	Branch	Ottawa, ON	Canada	Retail (Specialty)	2.1	7
Zale International, Inc.	Subsidiary	Irving, TX	United States	Retail (Specialty)		100
Zale Canada Holding, LP	Subsidiary	Irving, TX	United States	Retail (Specialty)
FINCO Holding, LP	Subsidiary	Irving, TX	United States	Retail (Specialty)
Zale Canada Co.	Subsidiary	Irving, TX	United States	Retail (Specialty)		1,800
Mappins Jewellers	Division	Irving, TX	United States	Retail (Specialty)
Zale Canada Diamond Sourcing, Inc.	Division	Irving, TX	United States	Retail (Specialty)
FINCO Partnership LP	Subsidiary	Irving, TX	United States	Business Services
Zale Delaware, Inc.	Subsidiary	Irving, TX	United States	Retail (Specialty)
Piercing Pagoda	Subsidiary	Irving, TX	United States	Retail (Specialty)	280.7	4,000
Piercing Pagoda	Branch	Rochester, NY	United States	Retail (Specialty)	2.1	9
Piercing Pagoda	Branch	Wyomissing, PA	United States	Retail (Specialty)	2.1	9
Piercing Pagoda	Branch	Whitehall, PA	United States	Retail (Specialty)	2.1	9
Zale Indemnity Company	Subsidiary	Irving, TX	United States	Investment Services		1,200
Jeweler's Financial Service, Inc.	Subsidiary	Irving, TX	United States	Consumer Financial Services		1,000
Zale Puerto Rico Inc.	Subsidiary	Irving, TX	United States	Retail (Specialty)		1,000
Jewel Re-Insurance Ltd.	Subsidiary	Irving, TX	United States	Investment Services		3
TXDC, LP	Subsidiary	Irving, TX	United States	Business Services
Zale Life Insurance Company	Subsidiary	Irving, TX	United States	Insurance (Life)
Jewelers Credit Corp.	Subsidiary	Irving, TX	United States	Consumer Financial Services
Zale Employees Child Care Association, Inc.	Subsidiary	Irving, TX	United States	Personal Services

Competitors Report

Company Name	Location	Employees	Ownership
Amazon.com, Inc.	Seattle, Washington, United States	56,200	Public
Birks & Mayors Inc.	Tamarac, Florida, United States	384	Private
Delhaize Group	Bruxelles, Belgium	78,945	Public
Fred Meyer Jewelers, Inc.	Portland, Oregon, United States	1,500	Private
Helzberg's Diamond Shops, Inc.	Kansas City, Missouri, United States	2,500	Private
Homebase Ltd.	Milton Keynes, United Kingdom	17,472	Private
J.C. Penney Company, Inc.	Plano, Texas, United States	159,000	Public
Kmart Corporation	Hoffman Estates, Illinois, United States	133,000	Private
Lowe's Companies, Inc.	Mooresville, North Carolina, United States	161,000	Public
LVMH Moet Hennessy Louis Vuitton SA	Paris, France	87,544	Public
Marks and Spencer Group Plc	London, United Kingdom	78,169	Public
May Department Stores International, Inc.	Cincinnati, Ohio, United States	2,000	Private
OTTO (Gmbh & Co KG)	Hamburg, Germany	49,721	Private
PPR SA	Paris, France	46,905	Public
QVC Inc	West Chester, Pennsylvania, United States	11,000	Private
Saks Inc	New York, New York, United States	10,125	Public
Sam's Club	Bentonville, Arkansas, United States	100,000	Private
Samuels Jewelers, Inc.	Austin, Texas, United States	860	Private
Signet Jewelers Ltd.	Hamilton, Bermuda	16,555	Public
Sterling Jewelers Inc.	Akron, Ohio, United States	1,800	Private
The Topaz Group, Inc.	Bangkok, Thailand	2,200	Private
Tiffany & Co.	New York, New York, United States	9,800	Public
Travis Perkins plc	Northampton, United Kingdom	21,423	Public
Wal-Mart Stores, Inc.	Bentonville, Arkansas, United States	2,200,000	Public

Executive report

Board of Directors

Name

Title

Function

John B. Lowe

Independent Chairman of the Board

Chairman

Mr. John B. Lowe Jr., is Independent Chairman of the Board of Zale Corp., since August 29, 2007. He has served as a director of the Company since March 5, 2004. Mr. Lowe served as Chairman and Chief Executive Officer of TDIndustries, a national mechanical/electrical/plumbing construction and facility service company from 1980 until January 1, 2005. He continues to serve as Chairman of TDIndustries. Mr. Lowe is a director of Drew Industries Incorporated and KDC Holdings, LLC, a private real estate development and investment firm. Mr. Lowe's executive and board level experience in excess of 30 years provides the Board of Directors and the Audit Committee with insight with respect to finance, strategy and business development, risk assessment, leadership development and corporate governance.

Age: 72

William Marsh Rice University (Engineering)

J. Glen Adams

Director

Director/Board Member

Yuval Braverman

Independent Director

Director/Board Member

Mr. Yuval Braverman is Independent Director of Zale Corp., since June 19, 2008. Mr. Braverman has been the president of J & J Zaidman Inc., a wholesaler of diamonds and other precious stones. Mr. Braverman has over 30 years of experience in the diamond and precious stone industry. This experience provides the Board of Directors and its standing committees with industry insight.

Age: 55

University of Maryland

David Dyer

Director

Director/Board Member

Mr. David F. Dyer is Independent Director of Zale Corporation. Mr. Dyer has served as a director of Chico's FAS, Inc. ("Chico's") since 2007, and has been President and Chief Executive Officer of Chico's since January 2009. Prior to joining Chico's, Mr. Dyer served as President, Chief Executive Officer and Director of Tommy Hilfiger Corporation from August 2003 through May 2006, and as President, Chief Executive Officer and Director of Lands' End, Inc. from 1998 through 2002. Mr. Dyer also served as President and Chief Operating Officer of Home Shopping Network. Mr. Dyer's experience as chief executive officer of several retail companies provides the Board of Directors with insight into the retail industry and strategy and business development.

Age: 61

Kenneth B. Gilman

Director

Director/Board Member

Mr. Kenneth B. Gilman is Independent Director of Zale Corp., since September 23, 2010. Mr. Gilman served as the Chief Executive Officer of Asbury Automotive Group, an automotive retailing and services company, from 2001 to May 2007. Previously, from 1976 to 2001, Mr. Gilman was employed in a variety of capacities with Limited Brands, a specialty apparel retailer, where his most recent assignment was Chief Executive Officer of Lane Bryant. From 1993 to 2001, Mr. Gilman served as Vice Chairman and Chief Administrative Officer of Limited Brands, with responsibility for finance, information technology, supply chain management, production, real estate, legal and internal audit. From 1987 to 1993, Mr. Gilman was Executive Vice President and Chief Financial Officer of Limited Brands. Mr. Gilman was elected to the board of directors of Limited Brands in 1990. Mr. Gilman also serves as a director of Liz Claiborne, Inc. Mr. Gilman's experience as a chief executive officer, chief administrative officer, chief financial officer and board member of other retail companies provides the Board of Directors with insight into the retail industry, strategy and business development, finance and operations, as well as the board practices of other retail corporations.

Age: 65

Pace University, BBA

Stefan L Kaluzny

Director

Director/Board Member

Stefan L. Kaluzny has served as a member of our board of directors since July 2007 and is currently Chairman of the Board. Mr. Kaluzny is a Managing Director of Golden Gate Capital and has been with the firm since its inception in 2000. Prior to Golden Gate Capital Mr. Kaluzny was co-founder and CEO of Delray Farms a Hispanic specialty food company. Mr. Kaluzny has also held positions at consulting firms Bain & Company and LEK. He has an M.B.A. from Harvard Business School and a B.A. from Yale University. Mr. Kaluzny serves on the Yale University Investment Committee and is also a member of the board of directors of Apogee Retail Eddie Bauer J. Jill Romanos Macaroni Grill and Orchard Brands. As a result of these and other professional experiences Mr. Kaluzny possesses particular knowledge and experience in retail merchandising; accounting finance and capital structure; strategic planning and leadership of complex organizations; and board practices of other major corporations that strengthen the boards collective qualifications skills and experience.

Yale University, BA (History)
Harvard Business School, MBA

Theophlius Killion

Chief Executive Officer and Director

Director/Board Member

Mr. Theophlius Killion is Chief Executive Officer, Director of Zale Corporation., since September 23, 2010. Mr. Killion served as President of the Company from August 5, 2008 to September 23, 2010, and was appointed Interim Chief Executive Officer on January 13, 2010. From January 23, 2008 to August 5, 2008, Mr. Killion served as Executive Vice President of Human Resources, Legal and Corporate Strategy. From May 2006 to January 2008, Mr. Killion was employed with the executive recruiting firm Berglass+Associates, focusing on companies in the retail, consumer goods and fashion industries. From April 2004 through April 2006, Mr. Killion served as Executive Vice President of Human Resources at Tommy Hilfiger. From 1996 to 2004, Mr. Killion served in various management positions with Limited Brands. Mr. Killion's executive experience with the Company and with other retailers provides the Board of Directors with insight into the retail industry, strategy and business development, operations and risk management.

Age: 60

Compensation/Salary:$769,250

Compensation Currency: USD

Peter Morrow

Director

Director/Board Member

Stanford University, BA (Economics)
Harvard Business School, MBA

Beth M. Pritchard

Director

Director/Board Member

Executives

Name

Title

Function

Theophlius Killion

Chief Executive Officer and Director

Chief Executive Officer

Age: 60

Compensation/Salary:$769,250

Compensation Currency: USD

John Zimmermann

President

Heidi Abrams

General Manager

Division Head Executive

Norma Barroga

General Manager

Division Head Executive

Angela Blose

General Manager

Division Head Executive

Cindy Burris

General Manager

Division Head Executive

Russell Butts

General Manager

Division Head Executive

Alex Carver

General Manager

Division Head Executive

Nonna Chiaka

General Manager

Division Head Executive

David Cooper

Division Director, Merchandise

Division Head Executive

Melinda Diaz

General Manager

Division Head Executive

Miki Drieth

General Manager

Division Head Executive

Lisa Dutton

General Manager

Division Head Executive

Laura Epperson

General Manager

Division Head Executive

Stephanie Harvey

General Manager

Division Head Executive

Stacey Johnson

General Manager

Division Head Executive

Jennifer Keever

General Manager

Division Head Executive

Jill Manferger

General Manager

Division Head Executive

Balinda Mayer

General Manager

Division Head Executive

Becky Mick

Senior Vice President and Chief Stores Officer

Division Head Executive

Ms. Becky Mick is Senior Vice President, Chief Stores Officer of ZALE Corp., since July 2010. Ms. Mick served as Vice President Zale North America since joining the Company in September 2008. Prior to joining the Company, Ms. Mick served as Vice President, Director of Stores and Operations of The Disney Store from May 2006 to April 2008. Ms. Mick served as Vice President of The Children's Place from August 2005 to May 2006. From 1997 to 2005, Ms. Mick held various management positions with Old Navy.

Age: 49

South Dakota State University

Pat Miller

General Manager

Division Head Executive

Krystal Noel

General Manager

Division Head Executive

Larry Oliver

General Manager

Division Head Executive

Edward Palladeno

General Manager

Division Head Executive

Lisa Pickett

General Manager

Division Head Executive

Michael Reybok

General Manager

Division Head Executive

Lisa Russo

General Manager

Division Head Executive

Christina Samsilippo

General Manager

Division Head Executive

Howard Sandler

General Manager

Division Head Executive

David Shelton

General Manager

Division Head Executive

Loren Squillante

General Manager

Division Head Executive

Christine Stafford

General Manager

Division Head Executive

Angel Wallen

General Manager

Division Head Executive

Harry Weiss

General Manager

Division Head Executive

Edward White

General Manager

Division Head Executive

Jina Wrightf

General Manager

Division Head Executive

George Brock

Director of Operation

Operations Executive

Eric Christopher

Vice President-Quality Assurance

Operations Executive

Deborah Hughes

Manager E-Commerce Usability and Operations

Operations Executive

Susann C Mayo

Senior Vice President-Supply Chain

Operations Executive

Matthew W. Appel

Executive Vice President, Chief Administrative Officer

Administration Executive

Mr. Matthew W. Appel, CPA, is Chief Administrative Officer, Executive Vice President of Zale Corp. He is no longer Chief Financial Officer of the Company effective October 17, 2011. He was named Executive Vice President of the Company effective May 2009 and appointed Chief Financial Officer of the Company on June 15, 2009. From March 2007 to May 2009, Mr. Appel served as Vice President and Chief Financial Officer of ExlService Holdings, Inc. Prior to ExlService Holdings, Inc, Mr. Appel was Vice President, BPO Product Management from 2006 to 2007 and Vice President, Finance and Administration BPO from 2003 through 2005 at Electronic Data Systems Corporation. From 2001 to 2003, Mr. Appel was the Senior Vice President, Finance and Accounting BPO at Affiliated Computer Services, Inc. Mr. Appel began his career with Arthur Andersen, where he spent seven years in their audit practice. Mr. Appel is a certified public accountant and certified management accountant.

Age: 55

Rutgers, The State University of New Jersey, MBA (Accounting)
Rutgers, The State University of New Jersey, BA (Business Administration)

Compensation/Salary:$485,000

Compensation Currency: USD

Art Brees

Information Technology Administration

Administration Executive

Tammy Henderson

Human Resources Admin.

Administration Executive

Elena Messina

Executive Admin

Administration Executive

Hilary Molay

Senior Vice President, General Counsel & Secretary

Administration Executive

Brandeis University, BA (Cum Laude)
University of Miami School of Law, JD (Cum Laude)

John Craven

Senior Director of Security

Security

Ken Brumfield

Senior Vice President of Financial Products

Finance Executive

Ms. Beth M. Pritchard has been appointed as Director of Zale Corp., effective March 9, 2012. Ms. Pritchard currently serves as the North American Advisor for M. H. Alshaya Company, a global franchise company representing over 65 premium brands throughout the Middle East, Eastern Europe, Russia and Africa. Ms. Pritchard also helped found Sunrise Beauty Studio, LLC, a developer of exclusive beauty brands and products. Prior to that, Ms. Pritchard served as Vice Chairman and Chief Executive Officer of Dean & Deluca and served as President and Chief Executive Officer of Limited Brands' Bath & Body Works. She currently serves on the boards of Vitamin Shoppe, Inc. and Cabela's, Inc.

Age: 64

Ken Brumfield

Senior Vice President - Financial Products

Finance Executive

Mr. Ken Brumfield has been appointed as Senior Vice President - Financial Products of Zale Corp., effective February 02, 2012. Mr. Brumfield has over 25 years of financial services' experience in all aspects of the consumer payments industry including card operations, risk underwriting, receivables financing, credit marketing, product innovation and development, and business development. Prior to rejoining Zale in September 2010, he served as Director of Sales at Alliance Data Systems, Inc. and as Senior Vice President of Credit Services at Stage Stores, Inc.

Age: 38

Blake Denzer

Senior Financial Analyst

Finance Executive

Thomas A. Haubenstricker

Senior Vice President and Chief Financial Officer

Finance Executive

Central Michigan University, BBA (Accounting)

Thomas A. Haubenstricker

Chief Financial Officer, Senior Vice President

Finance Executive

Reuters

Mr. Thomas A. Haubenstricker has been appointed as Chief Financial Officer, Senior Vice President of Zale Corporation effective October 17, 2011. Mr. Haubenstricker joins the Company from Turnberry Advisors, LLC, where he served as a Managing Director since January 2010. Prior to Turnberry Advisors, Mr. Haubenstricker spent 24 years at Electronic Data Systems (later acquired by Hewlett-Packard) in various finance and strategy leadership roles, including Co-Chief Financial Officer, Vice President and Chief Financial Officer, EMEA Region, and Vice President, Finance for the combined Hewlett-Packard and EDS Business Services Group. During his career, Mr. Haubenstricker has led business improvement programs focused on revenue growth, margin expansion and free cash flow generation. Mr. Haubenstricker holds a B.B.A. degree in Accounting from Central Michigan University and is a Certified Management Accountant.

Age: 49

Central Michigan University, BBA (Accounting)

Frank Holmes

Finance Director

Finance Executive

Judy Norris

Finance Manager

Finance Executive

Rachel Patch

Finance Manager

Finance Executive

Annette Meiring

Manager Accounts Payable

Accounting Executive

John Kane

Tax Manager

Corporate Tax Executive

Michele Nelson

Senior Tax Director

Corporate Tax Executive

Ken Rodriguez

Tax Manager

Corporate Tax Executive

Rhett Butler

Manager-Investor Relations

Investment Executive

David H Sternblitz

Vice President & Treasurer

Treasurer

Jeanne Baniewicz

Controller

Gina Mastantuono

Senior Vice President, Controller

Controller

Anna Pace

Assistant Controller

Controller

James E Sullivan

Vice President, Controller & Chief Accounting Office

Controller

Melissa Bradsher

Benefits Hotline

Benefits & Compensation Executive

Marty Crouch

Compensation Manager

Benefits & Compensation Executive

Rosita Martinez

Manager of Payroll Services

Benefits & Compensation Executive

Karen Treichler

Senior Director, Compensation, Benefits and HRIS

Benefits & Compensation Executive

Tiffany Banks

Human Resources Specialist

Human Resources Executive

Shaye Cunningham

Human Resources Manager

Human Resources Executive

Cindy Curlett

Human Resources Representative-Merchandising

Human Resources Executive

Mary Ann Doran

Senior Vice President-Human Resources

Human Resources Executive

Donna Ellsworth

Human Resources

Human Resources Executive

Helen Marsal

Senior Vice President, Human Resources

Human Resources Executive

Toyin Ogun

Senior Vice President, Human Resources and Customer Service

Human Resources Executive

Mr. Toyin Ogun is Senior Vice President - Human Resources and Customer Services of Zale Corp. Prior to joining Zale, Mr. Ogun was Senior Vice President, Human Resources at L.L. Bean where he was responsible for all human resources activities and served in a leadership role in IT integration, international and direct to business growth projects. Prior to that, Mr. Ogun served as Senior Vice President, Human Resources at Sears and earlier at Limited Brands.

Age: 51

George J Slicho

Senior Vice President-Loss Prevention

Human Resources Executive

Louisiana State University, BS (Business Administration)

Kimberly Van Heel

Human Resources Business Analyst

Human Resources Executive

Courtney Miller

Regional Field Trainer

Training Executive

Emily Nowak

Technical Training Manager

Training Executive

Christine Oehlberg

Regional Field Trainer

Training Executive

Steve Fontaine

Director - Customer Service

Customer Service Executive

Melissa Belvadi

Sales Executive

Greg Hoveland

Account Executive

Sales Executive

Gregory Humensky

Senior Vice President

Sales Executive

Amy Lewis

Account Executive

Sales Executive

Matt Kennedy

Director E-Commerce Marketing

E-Commerce Executive

Gina West

Coordinator, E-Commerce

E-Commerce Executive

Maie Amer-Guerrera

Director of Marketing and Visual Merchandising

Marketing Executive

Marti Anderson

Assistant Marketing Director

Marketing Executive

Tanya Boyce

Director of Marketing

Marketing Executive

Tanya Boyd

Director of Marketing

Marketing Executive

Becky Higgins

Marketing VP

Marketing Executive

Richard A. Lennox

Chief Marketing Officer, Executive Vice President

Marketing Executive

Mr. Richard A. Lennox is Chief Marketing Officer, Executive Vice President of Zale Corp., since August 2009. Prior to joining the Company, Mr. Lennox served as Executive Vice President, Marketing Director at J. Walter Thompsonâ€”New York. Mr. Lennox started at J. Walter Thompson in 1989 and held various senior level marketing positions. He began his career in 1987 with AGBâ€”London.

Age: 46

University of Reading

Compensation/Salary:$388,269

Compensation Currency: USD

John Mcnamara

Director of Marketing

Marketing Executive

Tanya Parrish

Senior Director of Marketing

Marketing Executive

Grant Rowe

Manager, Marketing

Marketing Executive

Ann Swirczynski

Manager, Communications

Corporate Communications Executive

Patrick Lee

Investor Relations Manager

Public Relations Executive

Bianca Hernandez

Advertising Project Manager

Advertising Executive

Kurt Johnston

Creative Director, Visual Merchandising

Advertising Executive

Gina Lee

Advertising Project Manager

Advertising Executive

Roxane Barry

Director of Investor Relations

Investor Relations Executive

Dan Armenta

Director Information Technology

Information Executive

Art Breeze

MIS Manager

Information Executive

Pete Bueno

MIS Director

Information Executive

Robert Bullock

Information Technology Director

Information Executive

Jeff Coble

Information Technology Director

Information Executive

Patrice Fazier

Information Technology Security Analyst

Information Executive

Brad Furry

Senior Vice President, Chief Information Officer

Information Executive

Texas A&M University, bachelor's
Texas A&M University, master's

Brad Furry

Senior Vice President, Chief Information Officer

Information Executive

Mr. Brad Furry has been appointed as Senior Vice President, Chief Information Officer of Zale Corp., effective September 06, 2011. Mr. Furry brings over 28 years of information technology and applications development experience to the team. Prior to joining Zale Corporation, Brad spent 21 years at The Neiman Marcus Group, most recently as Vice President of Enterprise Services with responsibility for applications development and maintenance, vendor management, project portfolio management, strategy and innovation, and helped direct ecommerce strategy. Prior to that, he managed applications development at Pier 1 Imports. Mr. Furry holds both an M.A. and B.S. degree from Texas A&M University.

Texas A&M University, MA
Texas A&M University, BS

Andrea Galante

Director, Information Technology - Business Applications

Information Executive

Robert Harris

Technical Manager

Information Executive

Jeff Johnson

Manager

Information Executive

Terry Kniep

Information Technology Director

Information Executive

Department Legal

Information Technology Director

Information Executive

Dave Magness

IT Director

Information Executive

Tom Melifsky

Mis Director

Information Executive

Steve Moore

Information Technology Director

Information Executive

Gary Moore

Director-Information Systems

Information Executive

Jill Reese

Information Technology Manager of Oracle Retail Applications

Information Executive

Brenda Santos

Director Information Technology Security and Compliance

Information Executive

Mark Stone

Senior Vice President, Chief Information Officer

Information Executive

Baylor University, BBA (Accounting)
Westminster Theological Seminary, Masters (Divinity)

Pete Graham

System Architect

Network Management Executive

Jonathan Taylor

Director, Web Content

Network Management Executive

Rais Bhuiyan

DBA

Engineering/Technical Executive

Scott Heath

Technical Specialist

Engineering/Technical Executive

Steve Muller

DBA

Engineering/Technical Executive

Rik Eder

Manager - Telecommunications

Telecommunications Executive

Don Westurn

Telecommunications Executive

Dave Terre

Management and Research Chief

Research & Development Executive

Jeannie Barsam

Senior Vice President, Merchandise Planning and Allocation

Planning Executive

Ms. Jeannie Barsam is Senior Vice President - Merchandise Planning and Allocation of Zale Corp. She was most recently Senior Vice President, Planning, Allocation and Company Planning for Charlotte Russe. Prior to that, she served as Senior Vice President, Inventory Management and Merchandise Systems at Talbots and Vice President, Merchandise Planning and Allocation at Gap. Earlier in her career, she served in merchandising and planning roles at Mervyn's and Lane Bryant.

Age: 50

Christal Fisher

Vice President

Planning Executive

Jerome Muse

Senior Director Logistics Planning and Analysis

Planning Executive

Gerald Tracy

Senior Manager of Planning and Allocations

Planning Executive

Robin Hogan

Director and Senior Attorney

Legal Executive

Linda Jenkins

Customs Compliance Specialist

Legal Executive

Mark Marriot

Director Compliance

Legal Executive

Jennifer Rodriguez

Senior Attorney

Legal Executive

Louise Herfel

Director of Purchasing Transportation Logistics

Logistics Executive

Tom Sangalli

Vice President of Distribution

Logistics Executive

Molly Pierce

Retail Manager

Merchandise Management Executive

Pam Pitcher

Buyer-Diamond

Merchandise Management Executive

Libe Valdez

Manager Inventory Control

Merchandise Management Executive

Vicki Diorio

Director of Real Estate Leasing

Facilities Executive

Andy Goldblatt

Director of Real Estate

Facilities Executive

Alex Hameed

Manager Property Development, Store Facilities

Facilities Executive

Stephen C Massanelli

Senior Vice President-Real Estate

Facilities Executive

Stephen C. Massanelli Principal. Mr. Massanelli is a key member of the Firms executive leadership. With an extensive corporate finance and restructuring background he is involved in all aspects of the Firms operations and has a particular focus on funding strategy and investor relations. Mr. Massanelli was most recently Senior Vice President and Treasurer for Zale Corporation where he co-led a successful capital restructuring for the company. At various times during his Zale tenure he was responsible for the companys treasury/finance real estate lT and risk management functions. His earlier experience includes a variety of positions with NationsBank and Amresco both Bank of America predecessors where among his responsibilities was the management of distressed corporate debt portfolios. Mr. Massanelli is a graduate of the University of Arkansas.

Marge Porche

Coordinator Facility, Maintenance

Facilities Executive

Subha Ramesh

Senior Vice President, Real Estate

Facilities Executive

Subha Ramesh

Facilities, Senior Vice President

Facilities Executive

Lupe Castillo

Purchasing Agent

Purchasing Executive

Robin Frazier

Manager Procurement

Purchasing Executive

Gilbert P. Hollander

Executive Vice President, Chief Sourcing & Supply Chain Officer and Chief Merchandising Officer

Purchasing Executive

Mr. Gilbert P. Hollander is Executive Vice President, Chief Merchant and Sourcing Officer of Zale Corp. He was appointed Executive Vice President and Chief Sourcing Officer in September 2007, and was given the additional title of Chief Merchant on January 13, 2010. Prior to that appointment, Mr. Hollander served as President, Corporate Sourcing/Piercing Pagoda beginning in May 2006, and was given the additional title of Group Senior Vice President in August 2006. From January 2005 to August 2006, he served as President, Piercing Pagoda. Prior to and up until that appointment, Mr. Hollander served as Vice President of Divisional Merchandise for Piercing Pagoda, to which he was appointed in August 2003. Mr. Hollander served as Senior Vice President of Merchandising for Piercing Pagoda from February 2000 to August 2003. Prior to February 2000, Mr. Hollander held various management positions within Piercing Pagoda beginning in May of 1997.

Age: 58

Compensation/Salary:$492,693

Compensation Currency: USD

Lauren Butler

Risk Management Coordinator

Insurance Executive

Jennifer Hohlt

Curriculum Designer

Educational Leadership

Celissa Fernandez

Event Planner

Meeting/Travel Planner

Debra Goodwin

Event Planner

Meeting/Travel Planner

Julie Abdinoor

Director, Department Manager

Other

Shasta Alexander

Regional Manager

Other

Myla Alston

Regional Manager

Other

Carol Barr

Ivr Manager

Other

Pia Brauser

Visual Merchandising Manager

Other

Delores Brooks

Comp Analyst

Other

Steve Burns

Contact

Other

Rosemary Carlson

Fixtures

Other

Jim Clark

Director Oracle Solutions

Other

Donald Corwin

Director Business Applications

Other

Sue Dales

Njn District Manager

Other

Charlene Doolin

Branch Manager

Other

Jil Dow

Director Shared Services

Other

Charles E Fieramosca

Corporate Senior Vice President

Other

Michele Fowler

Vice President

Other

Lisa Freeman

Vice President Corp Sourcing

Other

Geary Gowins

Senior Application Analyst

Other

Dennis Greaney

Executive Vice President

Other

Jeffrey Grider

Manager of Rent Control

Other

Lisa Gunderson

Senior Manager IT Finance, Admin

Other

Bill Harned

Application Developer

Other

Rick Hill

Vice President of Business Applications

Other

William Homes

Zale Company

Other

Lance Honeycutt

Regional Manager

Other

Kim Kizer

Director, Customer Experience

Other

Laura Koch

Assistant Merchant

Other

Mary Kottwitz

Business Intelligence Lead

Other

Marla Last

Social Media Project Manager

Other

John Legg

Senior Vice President, Supply Chain

Other

Mr. John A. Legg is Senior Vice President - Supply Chain of Zale Corporation. Mr. Legg was most recently Managing Director for Management Services International, LLC, a global consulting services company he formed to assess, design and launch supply chain solutions in support of restructuring, process improvement and inventory management initiatives. Prior to that, he served as Senior Vice President of Global Distribution and Logistics for Warnaco, Inc. and Vice President of International Distribution and Logistics for Liz Claiborne, Inc. Mr. Legg is a graduate of Northeastern University.

Age: 49

Northeastern University

Compensation/Salary:$220,615

Compensation Currency: USD

Suresh Manduva

Senior Developer Applications

Other

John Mcewen

Visual Project Manager

Other

Randy Mckellar

Manager of Oracle Applications

Other

Wendy Mercer

Planner

Other

Mike Meyer

Senior Director, IT Customer Solutions

Other

Karl Obrecht

Executive Vice President

Other

Joni Paxton

District Manager

Other

Jeff Payne

Project Manager

Other

Carl Peterson

Visual Merchandisng Specailist-Canada

Other

Vince Price

Executive Vice President Canada

Other

Cynthia Prieto

Pt Manager

Other

Scott Robison

Senior Vice President

Other

John Schwartz

Head of Maintenance Department

Other

Cynthia Sensale

Senior Vice President

Other

Lee Smith

Visual Merchandising Manager

Other

Larry Stanford

Construction

Other

Karen Stevenson

Branch Manager

Other

Steve Sutton

Director of Stores

Other

Alexandra P Sweeney

VP-Div. Merchandise Manager- Diamond Fashion & Anniversery Bands

Other

David Szymanski

Director

Other

Naomi Tapper

Regional Manager

Other

Cheryl Thomas

Bank Relationship Coordinator

Other

James Webb

Director Learning and Development

Other

Maria Wohlfeld

Visual Merchandising Manager Outlets

Other

Charleen Wuellner

Senior Vice President, Corporate Services

Other

Significant Developments

Zale Corporation Names Thomas A. Haubenstricker As Chief Financial Officer Oct 12, 2011

Zale Corporation announced that Thomas A. Haubenstricker has been named Senior Vice President, Chief Financial Officer (CFO) of the Company, effective October 17, 2011.

Zale Corporation Announces Exclusive Partnership For Diamond Fashion Jewelry Under Jessica Simpson Collection Aug 30, 2011

Zale Corporation announced that it has entered into a new partnership with Jessica Simpson on the development of an exclusive collection of diamond fashion jewelry. The Jessica Simpson Collection extends into 22 product categories including shoes, apparel, accessories, fragrances and more.

Zale Corporation Partners With Vera Wang To Offer Exclusive Bridal Jewelry Aug 11, 2011

Zale Corporation and Vera Wang announced a partnership to launch a new, exclusive collection of diamond bridal jewelry.

Activist Breeden Cuts Stake In Zale Corporation-Reuters Jun 12, 2011

Reuters reported that activist investor Richard Breeden cut his stake in Zale Corporation to less than 19% from more than 24%. The investor's hedge fund, Breeden Capital Management LLC, disclosed an 18.51% stake in Zale in a filing with the U.S. Securities and Exchange Commission.

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Jul-2011	31-Jul-2010	31-Jul-2009	31-Jul-2008	31-Jul-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Jul-2011	Updated Normal 31-Jul-2010	Restated Normal 31-Jul-2010	Restated Normal 31-Jul-2009	Restated Normal 31-Jul-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified

Net Sales	1,742.6	1,616.3	1,779.7	2,138.0	2,152.8
Revenue	1,742.6	1,616.3	1,779.7	2,138.0	2,152.8
Total Revenue	1,742.6	1,616.3	1,779.7	2,138.0	2,152.8

Cost of Revenue	862.5	802.2	948.6	1,089.6	1,029.6
Cost of Revenue, Total	862.5	802.2	948.6	1,089.6	1,029.6
Gross Profit	880.1	814.1	831.2	1,048.5	1,123.2

Selling/General/Administrative Expense	859.6	846.2	934.2	991.8	974.6
Total Selling/General/Administrative Expenses	859.6	846.2	934.2	991.8	974.6
Depreciation	41.3	50.0	58.9	60.2	56.6
Depreciation/Amortization	41.3	50.0	58.9	60.2	56.6
Investment Income - Operating	-	-	-	-	7.2
Interest/Investment Income - Operating	-	-	-	-	7.2
Interest Expense (Income) - Net Operating Total	-	-	-	-	7.2
Impairment-Assets Held for Use	6.8	29.9	19.9	1.9	-
Other Unusual Expense (Income)	0.3	3.4	27.0	0.0	0.0
Unusual Expense (Income)	7.0	33.4	46.9	1.9	0.0
Other, Net	-	0.0	0.0	-12.6	-
Other Operating Expenses, Total	-	0.0	0.0	-12.6	-
Total Operating Expense	1,770.4	1,731.8	1,988.7	2,130.9	2,067.9

Operating Income	-27.9	-115.4	-209.0	7.2	84.9

Interest Expense - Non-Operating	-82.6	-15.7	-10.4	-12.4	-19.0
Interest Expense, Net Non-Operating	-82.6	-15.7	-10.4	-12.4	-19.0
Interest Income (Expense) - Net Non-Operating Total	-82.6	-15.7	-10.4	-12.4	-19.0
Other Non-Operating Income (Expense)	0.0	6.6	0.0	3.5	0.0
Other, Net	0.0	6.6	0.0	3.5	0.0
Income Before Tax	-110.5	-124.5	-219.4	-1.7	65.9

Total Income Tax	1.6	-28.8	-53.0	4.8	17.8
Income After Tax	-112.0	-95.8	-166.3	-6.5	48.1

Net Income Before Extraord Items	-112.0	-95.8	-166.3	-6.5	48.1
Discontinued Operations	-0.3	2.1	-23.2	7.1	11.1
Total Extraord Items	-0.3	2.1	-23.2	7.1	11.1
Net Income	-112.3	-93.7	-189.5	0.6	59.3

Income Available to Common Excl Extraord Items	-112.0	-95.8	-166.3	-6.5	48.1

Income Available to Common Incl Extraord Items	-112.3	-93.7	-189.5	0.6	59.3

Basic/Primary Weighted Average Shares	32.1	32.1	31.9	42.4	48.7
Basic EPS Excl Extraord Items	-3.49	-2.99	-5.21	-0.15	0.99
Basic/Primary EPS Incl Extraord Items	-3.50	-2.92	-5.94	0.01	1.22
Dilution Adjustment	0.0	0.0	0.0	0.0	-
Diluted Net Income	-112.3	-93.7	-189.5	0.6	59.3
Diluted Weighted Average Shares	32.1	32.1	31.9	42.4	49.0
Diluted EPS Excl Extraord Items	-3.49	-2.99	-5.21	-0.15	0.98
Diluted EPS Incl Extraord Items	-3.50	-2.92	-5.94	0.01	1.21
Dividends per Share - Common Stock Primary Issue	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Interest Expense, Supplemental	82.6	15.7	10.4	12.4	19.0
Depreciation, Supplemental	41.3	50.0	58.9	60.2	56.6
Total Special Items	7.0	33.4	46.9	1.9	0.0
Normalized Income Before Tax	-103.4	-91.2	-172.4	0.2	65.9

Effect of Special Items on Income Taxes	2.5	11.7	16.4	0.7	0.0
Inc Tax Ex Impact of Sp Items	4.0	-17.1	-36.6	5.4	17.8
Normalized Income After Tax	-107.5	-74.1	-135.8	-5.2	48.1

Normalized Inc. Avail to Com.	-107.5	-74.1	-135.8	-5.2	48.1

Basic Normalized EPS	-3.34	-2.31	-4.26	-0.12	0.99
Diluted Normalized EPS	-3.34	-2.31	-4.26	-0.12	0.98
Rental Expenses	195.4	195.5	208.1	213.1	205.5
Advertising Expense, Supplemental	76.5	75.8	87.9	96.3	93.4
Reported Operating Profit	-	-	-	-	84.9
Normalized EBIT	-20.8	-82.1	-162.0	9.1	92.0
Normalized EBITDA	20.5	-32.1	-103.1	69.3	148.6
Current Tax - Domestic	-9.6	-32.8	0.5	2.3	-4.1
Current Tax - Foreign	5.0	4.1	6.8	17.7	12.4
Current Tax - Local	0.9	0.3	0.9	0.7	1.8
Current Tax - Total	-3.7	-28.4	8.2	20.7	10.2
Deferred Tax - Domestic	5.1	1.1	-60.1	-11.0	9.6
Deferred Tax - Foreign	0.2	-1.5	1.3	-5.7	-3.7
Deferred Tax - Local	0.0	0.0	-2.4	0.8	1.6
Deferred Tax - Total	5.3	-0.4	-61.2	-15.9	7.6
Income Tax - Total	1.6	-28.8	-53.0	4.8	17.8
Defined Contribution Expense - Domestic	-	-	1.8	2.1	2.9
Total Pension Expense	-	-	1.8	2.1	2.9

Annual Balance Sheet

Financials in: USD (mil)

	31-Jul-2011	31-Jul-2010	31-Jul-2009	31-Jul-2008	31-Jul-2007
UpdateType/Date	Updated Normal 31-Jul-2011	Restated Normal 31-Jul-2011	Updated Normal 31-Jul-2009	Restated Normal 31-Jul-2009	Updated Normal 31-Jul-2007
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified

Cash & Equivalents	35.1	26.2	25.0	61.3	37.6
Cash and Short Term Investments	35.1	26.2	25.0	61.3	37.6
Total Inventory	720.8	703.1	740.3	799.2	1,021.2
Prepaid Expenses	20.5	20.1	20.8	22.5	-
Other Current Assets	29.3	21.9	31.1	83.9	113.5
Other Current Assets, Total	29.3	21.9	31.1	83.9	113.5
Total Current Assets	805.7	771.3	817.2	966.9	1,172.3

Buildings	236.3	232.1	237.2	256.4	266.4
Machinery/Equipment	464.7	448.4	439.2	452.6	465.2
Construction in Progress	3.8	13.3	14.3	25.7	12.0
Property/Plant/Equipment - Gross	704.8	693.8	690.7	734.8	743.6
Accumulated Depreciation	-563.1	-520.4	-452.6	-436.9	-439.2
Property/Plant/Equipment - Net	141.8	173.4	238.1	297.9	304.4
Goodwill, Net	104.6	98.4	94.6	103.7	100.7
Deferred Income Tax - Long Term Asset	93.0	75.5	51.5	10.9	1.3
Other Long Term Assets	44.8	52.7	29.5	35.9	35.2
Other Long Term Assets, Total	137.8	128.2	81.0	46.8	36.5
Total Assets	1,189.9	1,171.3	1,231.0	1,415.3	1,613.9

Accounts Payable	143.9	157.2	124.4	154.1	142.6
Accrued Expenses	56.9	56.8	64.8	70.0	99.1
Notes Payable/Short Term Debt	0.0	0.0	0.0	0.0	0.0
Current Portion - Long Term Debt/Capital Leases	0.0	11.3	-	-	-
Customer Advances	94.2	78.1	60.2	41.8	29.5
Income Taxes Payable	16.7	15.0	17.1	21.6	29.7
Deferred Income Tax - Current Liability	92.7	70.0	46.4	65.7	73.5
Other Current Liabilities	1.7	10.8	43.5	0.0	-
Other Current liabilities, Total	205.3	174.0	167.1	129.2	132.7
Total Current Liabilities	406.2	399.2	356.3	353.2	374.5

Long Term Debt	395.5	284.7	310.5	326.3	227.3
Total Long Term Debt	395.5	284.7	310.5	326.3	227.3
Total Debt	395.5	295.9	310.5	326.3	227.3

Deferred Income Tax - LT Liability	-	-	-	-	0.0
Deferred Income Tax	-	-	-	-	0.0
Reserves	6.2	5.4	5.8	5.8	7.1
Other Long Term Liabilities	169.3	173.9	184.6	163.5	102.5
Other Liabilities, Total	175.5	179.4	190.3	169.3	109.6
Total Liabilities	977.1	863.3	857.2	848.8	711.4

Common Stock	0.5	0.5	0.5	0.5	0.5
Common Stock	0.5	0.5	0.5	0.5	0.5
Additional Paid-In Capital	161.6	160.6	147.3	144.5	138.0
Retained Earnings (Accumulated Deficit)	451.7	564.0	657.7	847.2	868.1
Treasury Stock - Common	-464.3	-465.6	-469.0	-476.7	-150.0
Other Comprehensive Income	63.4	48.4	37.3	51.0	45.9
Other Equity, Total	63.4	48.4	37.3	51.0	45.9
Total Equity	212.8	308.0	373.8	566.5	902.6

Total Liabilities & Shareholdersâ€™ Equity	1,189.9	1,171.3	1,231.0	1,415.3	1,613.9

Shares Outstanding - Common Stock Primary Issue	32.2	32.1	32.0	31.6	49.1
Total Common Shares Outstanding	32.2	32.1	32.0	31.6	49.1
Treasury Shares - Common Stock Primary Issue	22.6	22.6	22.8	23.1	5.6
Employees	12,600	12,800	14,500	15,500	17,600
Number of Common Shareholders	556	570	504	497	685
Deferred Revenue - Current	94.2	78.1	60.2	41.8	29.5
Deferred Revenue - Long Term	138.0	140.7	150.0	131.2	69.5
Total Long Term Debt, Supplemental	395.5	316.7	311.0	326.0	227.0
Long Term Debt Maturing within 1 Year	0.0	11.3	103.7	0.0	0.0
Long Term Debt Maturing in Year 2	0.0	0.0	103.7	0.0	0.0
Long Term Debt Maturing in Year 3	255.0	0.0	103.7	0.0	0.0
Long Term Debt Maturing in Year 4	140.5	165.0	0.0	163.0	113.5
Long Term Debt Maturing in Year 5	0.0	140.5	0.0	163.0	113.5
Long Term Debt Maturing in 2-3 Years	255.0	0.0	207.3	0.0	0.0
Long Term Debt Maturing in 4-5 Years	140.5	305.5	0.0	326.0	227.0
Long Term Debt Matur. in Year 6 & Beyond	0.0	0.0	0.0	0.0	0.0
Total Operating Leases, Supplemental	686.4	809.7	861.7	996.8	1,063.5
Operating Lease Payments Due in Year 1	169.6	179.6	174.3	189.7	203.2
Operating Lease Payments Due in Year 2	139.6	155.6	147.5	167.9	177.4
Operating Lease Payments Due in Year 3	113.1	128.3	123.2	141.4	155.0
Operating Lease Payments Due in Year 4	89.8	104.8	107.5	117.2	127.4
Operating Lease Payments Due in Year 5	70.2	84.3	94.1	102.2	101.4
Operating Lease Pymts. Due in 2-3 Years	252.7	283.9	270.7	309.3	332.4
Operating Lease Pymts. Due in 4-5 Years	159.9	189.1	201.6	219.4	228.8
Oper. Lse. Pymts. Due in Year 6 & Beyond	104.2	157.1	215.1	278.3	299.1

Annual Cash Flows

Financials in: USD (mil)

	31-Jul-2011	31-Jul-2010	31-Jul-2009	31-Jul-2008	31-Jul-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Jul-2011	Updated Normal 31-Jul-2010	Restated Normal 31-Jul-2010	Reclassified Normal 31-Jul-2010	Reclassified Normal 31-Jul-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified

Net Income/Starting Line	-112.3	-93.7	-189.5	0.6	59.3
Depreciation	41.3	50.0	58.9	60.2	57.6
Depreciation/Depletion	41.3	50.0	58.9	60.2	57.6
Deferred Taxes	5.3	0.0	-61.0	-14.6	7.1
Discontinued Operations	-5.1	-17.5	23.2	-28.7	-9.8
Unusual Items	8.2	22.6	31.5	5.4	3.8
Other Non-Cash Items	36.7	8.9	6.4	-7.5	6.1
Non-Cash Items	39.8	14.1	61.0	-30.8	0.1
Inventories	-8.1	42.4	53.2	71.1	-97.0
Other Assets	-8.9	12.2	56.6	1.2	-8.2
Payable/Accrued	-3.5	24.2	1.6	-34.5	-34.6
Other Liabilities	-6.0	-12.3	21.9	59.6	56.5
Changes in Working Capital	-26.4	66.5	133.2	97.5	-83.4
Cash from Operating Activities	-52.3	36.9	2.7	113.0	40.6

Purchase of Fixed Assets	-15.3	-14.7	-28.4	-85.1	-79.3
Capital Expenditures	-15.3	-14.7	-28.4	-85.1	-79.3
Sale/Maturity of Investment	6.1	2.4	25.8	8.3	8.1
Purchase of Investments	-9.4	-3.0	-22.7	-10.4	-11.3
Other Investing Cash Flow	-	0.0	0.0	225.1	-7.2
Other Investing Cash Flow Items, Total	-3.2	-0.6	3.1	222.9	-10.3
Cash from Investing Activities	-18.6	-15.2	-25.3	137.7	-89.6

Other Financing Cash Flow	0.0	-25.5	0.2	0.1	1.4
Financing Cash Flow Items	0.0	-25.5	0.2	0.1	1.4
Repurchase/Retirement of Common	-	0.0	0.0	-326.7	0.0
Common Stock, Net	-	0.0	0.0	-326.7	0.0
Options Exercised	0.1	0.0	6.2	2.0	17.8
Issuance (Retirement) of Stock, Net	0.1	0.0	6.2	-324.7	17.8
Short Term Debt Issued	3,604.8	4,465.1	5,107.2	3,630.8	3,977.6
Short Term Debt Reduction	-3,514.8	-4,610.6	-5,123.0	-3,531.8	-3,953.1
Short Term Debt, Net	90.0	-145.5	-15.8	99.0	24.5
Long Term Debt Issued	0.0	150.0	0.0	0.0	-
Long Term Debt Reduction	-11.3	-	-	-	-
Long Term Debt, Net	-11.3	150.0	0.0	0.0	-
Issuance (Retirement) of Debt, Net	78.8	4.5	-15.8	99.0	24.5
Cash from Financing Activities	78.8	-21.0	-9.4	-225.7	43.7

Foreign Exchange Effects	1.0	0.5	-4.3	0.2	0.3
Net Change in Cash	8.9	1.2	-36.4	25.2	-5.0

Net Cash - Beginning Balance	26.2	25.0	61.3	36.2	42.6
Net Cash - Ending Balance	35.1	26.2	25.0	61.3	37.6
Cash Interest Paid	32.1	10.8	11.0	12.9	19.2
Cash Taxes Paid	1.0	30.0	6.4	1.0	13.1

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Jul-2011	31-Jul-2010	31-Jul-2009	31-Jul-2008	31-Jul-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Jul-2011	Updated Normal 31-Jul-2010	Restated Normal 31-Jul-2010	Restated Normal 31-Jul-2009	Restated Normal 31-Jul-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	KPMG LLP
Auditor Opinion	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified

Revenues	1,742.6	1,616.3	1,779.7	2,138.0	2,152.8
Total Revenue	1,742.6	1,616.3	1,779.7	2,138.0	2,152.8

Cost of Sales	862.5	802.2	948.6	1,089.6	1,029.6
Selling/general & administrative exp	859.6	846.2	934.2	985.0	967.6
Insur. Ops. Costs	-	-	-	6.7	6.9
Depreciation/Amort.	41.3	50.0	58.9	60.2	56.6
Impairment Charge	6.8	29.9	14.9	1.9	-
Unusual Items /Other Charges	0.3	3.4	27.0	0.0	-
Impair. Goodwill	0.0	0.0	5.0	0.0	-
Change in vacation policy	-	0.0	0.0	-12.6	-
Derivative (Gains)/Losses	-	-	-	-	7.2
Benefit from settlement of retirement pl	-	-	-	-	0.0
Total Operating Expense	1,770.4	1,731.8	1,988.7	2,130.9	2,067.9

Other Income	0.0	6.6	0.0	3.5	0.0
Interest expense	-82.6	-15.7	-10.4	-12.4	-19.0
Net Income Before Taxes	-110.5	-124.5	-219.4	-1.7	65.9

Provision for Income Taxes	1.6	-28.8	-53.0	4.8	17.8
Net Income After Taxes	-112.0	-95.8	-166.3	-6.5	48.1

Net Income Before Extra. Items	-112.0	-95.8	-166.3	-6.5	48.1
Earnings from discontinued operations n	-0.3	2.1	-23.2	7.1	11.1
Net Income	-112.3	-93.7	-189.5	0.6	59.3

Income Available to Com Excl ExtraOrd	-112.0	-95.8	-166.3	-6.5	48.1

Income Available to Com Incl ExtraOrd	-112.3	-93.7	-189.5	0.6	59.3

Basic Weighted Average Shares	32.1	32.1	31.9	42.4	48.7
Basic EPS Excluding ExtraOrdinary Items	-3.49	-2.99	-5.21	-0.15	0.99
Basic EPS Including ExtraOrdinary Item	-3.50	-2.92	-5.94	0.01	1.22
Dilution Adjustment	0.0	0.0	0.0	0.0	-
Diluted Net Income	-112.3	-93.7	-189.5	0.6	59.3
Diluted Weighted Average Shares	32.1	32.1	31.9	42.4	49.0
Diluted EPS Excluding ExtraOrd Items	-3.49	-2.99	-5.21	-0.15	0.98
Diluted EPS Including ExtraOrd Items	-3.50	-2.92	-5.94	0.01	1.21
DPS-Common Stock	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Normalized Income Before Taxes	-103.4	-91.2	-172.4	0.2	65.9

Inc Tax Ex Impact of Sp Items	4.0	-17.1	-36.6	5.4	17.8
Normalized Income After Taxes	-107.5	-74.1	-135.8	-5.2	48.1

Normalized Inc. Avail to Com.	-107.5	-74.1	-135.8	-5.2	48.1

Basic Normalized EPS	-3.34	-2.31	-4.26	-0.12	0.99
Diluted Normalized EPS	-3.34	-2.31	-4.26	-0.12	0.98
Interest Expense	82.6	15.7	10.4	12.4	19.0
Depreciation	41.3	50.0	58.9	60.2	56.6
Advertising Expense	76.5	75.8	87.9	96.3	93.4
Rental Expense	195.4	195.5	208.1	213.1	205.5
Current Tax - Federal	-9.6	-32.8	0.5	2.3	-4.1
Current Tax - Foreign	5.0	4.1	6.8	17.7	12.4
Current Tax - State	0.9	0.3	0.9	0.7	1.8
Current Tax - Total	-3.7	-28.4	8.2	20.7	10.2
Deferred Tax - Federal	5.1	1.1	-60.1	-11.0	9.6
Deferred Tax - Foreign	0.2	-1.5	1.3	-5.7	-3.7
Deferred Tax - State	0.0	0.0	-2.4	0.8	1.6
Deferred Tax - Total	5.3	-0.4	-61.2	-15.9	7.6
Income Tax - Total	1.6	-28.8	-53.0	4.8	17.8
Operating earnings	-	-	-	-	84.9
Defined Contribution Retirement Plan	-	-	1.8	2.1	2.9
Total Pension Expense	-	-	1.8	2.1	2.9

Annual Balance Sheet

Financials in: USD (mil)

	31-Jul-2011	31-Jul-2010	31-Jul-2009	31-Jul-2008	31-Jul-2007
UpdateType/Date	Updated Normal 31-Jul-2011	Restated Normal 31-Jul-2011	Updated Normal 31-Jul-2009	Restated Normal 31-Jul-2009	Updated Normal 31-Jul-2007
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	KPMG LLP
Auditor Opinion	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified

Cash/Equivalents	35.1	26.2	25.0	61.3	37.6
Merchandise Inventories	720.8	703.1	740.3	799.2	1,021.2
Prepaid Rent	20.5	20.1	20.8	22.5	-
Other Assets	29.3	21.9	31.1	83.9	113.5
Total Current Assets	805.7	771.3	817.2	966.9	1,172.3

Building/Lease	236.3	232.1	237.2	256.4	266.4
Furniture	464.7	448.4	439.2	452.6	465.2
Construction	3.8	13.3	14.3	25.7	12.0
Depreciation	-563.1	-520.4	-452.6	-436.9	-439.2
Goodwill	104.6	98.4	94.6	103.7	100.7
Other assets	44.8	52.7	29.5	35.9	35.2
Deferred tax asset	93.0	75.5	51.5	10.9	1.3
Total Assets	1,189.9	1,171.3	1,231.0	1,415.3	1,613.9

Cur. Port. LTD	0.0	11.3	-	-	-
Accounts Payable	143.9	157.2	124.4	154.1	142.6
Accrued Payroll	12.4	7.7	7.4	12.1	45.3
Accrued Taxes	16.7	15.0	17.1	21.6	29.7
Warranty deferred revenue	94.2	78.1	60.2	41.8	29.5
Percentage Rent	10.0	8.8	7.6	12.8	15.5
Other Accrual	34.5	40.4	49.7	45.1	38.3
Bailey Banks & Biddle lease reserve	1.2	5.6	23.2	0.0	-
Store closure reserve	0.6	5.1	20.3	0.0	-
Deferred tax liability	92.7	70.0	46.4	65.7	73.5
Total Current Liabilities	406.2	399.2	356.3	353.2	374.5

Long Term Debt	395.5	284.7	310.5	326.3	227.3
Total Long Term Debt	395.5	284.7	310.5	326.3	227.3

Other Liabs.	-	-	-	-	0.0
Insurance reserve	6.2	5.4	5.8	5.8	7.1
Long-term warranty deferred revenue	138.0	140.7	150.0	127.0	61.1
Long-term deferred servicing fee revenue	-	-	0.0	4.2	8.4
Deferred tax liability	-	-	-	-	0.0
Long-Term Accrued Rent	31.3	33.2	34.5	32.2	33.0
Total Liabilities	977.1	863.3	857.2	848.8	711.4

Common Stock	0.5	0.5	0.5	0.5	0.5
Additional paid-in capital	161.6	160.6	147.3	144.5	138.0
Accumulated other comprehensive income	63.4	48.4	37.3	51.0	45.9
Retained Earning	451.7	564.0	657.7	847.2	868.1
Treasury Stock	-464.3	-465.6	-469.0	-476.7	-150.0
Total Equity	212.8	308.0	373.8	566.5	902.6

Total Liabilities & Shareholders' Equity	1,189.9	1,171.3	1,231.0	1,415.3	1,613.9

S/O-Common Stock	32.2	32.1	32.0	31.6	49.1
Total Common Shares Outstanding	32.2	32.1	32.0	31.6	49.1
T/S-Common Stock	22.6	22.6	22.8	23.1	5.6
Deferred Revenue - Current	94.2	78.1	60.2	41.8	29.5
Deferred Revenue	138.0	140.7	150.0	131.2	69.5
Full-Time Employees	12,600	12,800	14,500	15,500	17,600
Number of Common Shareholders	556	570	504	497	685
Long Term Debt Maturing within 1 Year	0.0	11.3	-	-	-
Long Term Debt Maturing in Year 2	0.0	0.0	-	-	-
LT Debt Maturing 1-3 Years	255.0	0.0	311.0	0.0	0.0
Long Term Debt Maturing in Year 4	140.5	165.0	-	-	-
LT Debt Maturing 4-5 Years	0.0	140.5	0.0	326.0	227.0
Long Term Debt - Remaining Maturities	0.0	0.0	-	-	-
Total Long Term Debt, Supplemental	395.5	316.7	311.0	326.0	227.0
Operating Lease Payable within 1 Year	169.6	179.6	174.3	189.7	203.2
Operating Lease Payable within 2 Years	139.6	155.6	147.5	167.9	177.4
Operating Lease Payable within 3 Years	113.1	128.3	123.2	141.4	155.0
Operating Lease Payable within 4 Years	89.8	104.8	107.5	117.2	127.4
Operating Lease Payable within 5 Years	70.2	84.3	94.1	102.2	101.4
Operating Leases - Remaining Maturities	104.2	157.1	215.1	278.3	299.1
Total Operating Leases	686.4	809.7	861.7	996.8	1,063.5

Annual Cash Flows

Financials in: USD (mil)

	31-Jul-2011	31-Jul-2010	31-Jul-2009	31-Jul-2008	31-Jul-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Jul-2011	Updated Normal 31-Jul-2010	Restated Normal 31-Jul-2010	Reclassified Normal 31-Jul-2010	Reclassified Normal 31-Jul-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	KPMG LLP
Auditor Opinion	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified

Net Income	-112.3	-93.7	-189.5	0.6	59.3
Depreciation	41.3	50.0	58.9	60.2	57.6
Goodwill Impairment	0.0	0.0	5.0	0.0	-
Conversion of paid in kind interest to S	0.0	1.7	0.0	0.0	-
Change in vacation policy	-	0.0	0.0	-12.6	0.0
Stock based compensation	2.2	3.9	5.7	4.4	6.1
Deferred Taxes	5.3	0.0	-61.0	-14.6	7.1
Repartriation Impact on Tax Provision	-	-	-	-	0.0
Retiree Medical Plan Termination Impact	-	-	-	-	0.0
(Earnings) loss from discontinued operat	0.3	-2.1	23.2	-7.1	-11.1
Derivative (Gains)/Losses	-	-	-	-	-1.3
Gain on warrants	0.0	-8.3	0.0	0.0	-
Amortization of debt issuance costs	34.6	3.4	0.7	0.7	-
Impairment of property and equipment	6.8	29.9	23.8	1.9	2.5
Sale of Property	1.4	1.0	2.7	3.5	2.7
Inventories	-8.1	42.4	53.2	71.1	-97.0
Other Current Assets	-6.9	10.1	53.8	-1.3	-9.8
Other Assets	-2.0	2.1	2.8	2.5	1.5
Payables/Accrued	-3.5	24.2	1.6	-34.5	-34.6
Liabilities	-6.0	-12.3	21.9	59.6	56.5
Discontinued Operations	-5.4	-15.4	0.0	-21.6	1.4
Cash from Operating Activities	-52.3	36.9	2.7	113.0	40.6

Capital Expenditures	-15.3	-14.7	-28.4	-85.1	-79.3
Purchase Investments	-9.4	-3.0	-22.7	-10.4	-11.3
Sale of Investments	6.1	2.4	25.8	8.3	8.1
Net cash provided by (used in) investing	-	0.0	0.0	225.1	-7.2
Cash from Investing Activities	-18.6	-15.2	-25.3	137.7	-89.6

Payments on Senior Secured Term Loan	-11.3	-	-	-	-
Debt issuance costs	0.0	-25.5	0.0	0.0	-
Proceeds from Senior Secured Term Loan	0.0	150.0	0.0	0.0	-
Credit Payments	-3,514.8	-4,610.6	-5,123.0	-3,531.8	-3,953.1
Credit Proceeds	3,604.8	4,465.1	5,107.2	3,630.8	3,977.6
Stock Options Exer.	0.1	0.0	6.2	2.0	17.8
Excess Tax Benefits on Stock Options Exe	0.0	0.0	0.2	0.1	1.4
Treasury Stock	-	0.0	0.0	-326.7	0.0
Cash from Financing Activities	78.8	-21.0	-9.4	-225.7	43.7

Foreign Exchange Effects	1.0	0.5	-4.3	0.2	0.3
Net Change in Cash	8.9	1.2	-36.4	25.2	-5.0

Net Cash - Beginning Balance	26.2	25.0	61.3	36.2	42.6
Net Cash - Ending Balance	35.1	26.2	25.0	61.3	37.6
Cash Interest Paid	32.1	10.8	11.0	12.9	19.2
Cash Taxes Paid	1.0	30.0	6.4	1.0	13.1

Financial Health

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Key IndicatorsÂ USD (mil)
Â	Quarter Ending 31-Jan-2012	Quarter Ending Yr Ago	Annual Year End 31-Jul-2011	1 Year Growth	3 Year Growth	5 Year Growth
Total Revenue	663.8	5.96%	1,742.6	7.81%	-6.59%	-4.15%
Operating Income	43.2	-0.95%	-27.9	-	-	-
Income Available to Common Excl Extraord Items	28.9	4.28%	-112.0	-	-	-
Basic EPS Excl Extraord Items	0.90	4.06%	-3.49	-	-	-
Capital Expenditures	10.0	79.76%	15.3	4.54%	-43.55%	-27.49%
Cash from Operating Activities	-24.3	-	-52.3	-	-	-
Free Cash Flow	-34.3	-	-67.7	-	-	-
Total Assets	1,256.7	2.80%	1,189.9	1.59%	-5.62%	-4.04%
Total Liabilities	1,054.4	7.77%	977.1	13.18%	4.80%	8.22%
Total Long Term Debt	425.5	10.38%	395.5	38.91%	6.62%	14.29%
Employees	-	-	12600	-1.56%	-6.67%	-5.70%
Total Common Shares Outstanding	32.2	0.24%	32.2	0.16%	0.57%	-7.75%
Market Cap	91.8	-38.83%	180.4	219.27%	-36.34%	-31.91%

Key Ratios
Â	31-Jul-2011	31-Jul-2010	31-Jul-2009	31-Jul-2008	31-Jul-2007
Profitability
Gross Margin	50.51%	50.37%	46.70%	49.04%	52.18%
Operating Margin	-1.60%	-7.14%	-11.74%	0.34%	3.94%
Pretax Margin	-6.34%	-7.71%	-12.33%	-0.08%	3.06%
Net Profit Margin	-6.43%	-5.93%	-9.35%	-0.30%	2.23%
Financial Strength
Current Ratio	1.98	1.93	2.29	2.74	3.13
Long Term Debt/Equity	1.86	0.92	0.83	0.58	0.25
Total Debt/Equity	1.86	0.96	0.83	0.58	0.25
Management Effectiveness
Return on Assets	-9.49%	-7.98%	-12.57%	-0.43%	3.13%
Return on Equity	-43.02%	-28.10%	-35.38%	-0.88%	5.64%
Efficiency
Inventory Turnover	1.21	1.11	1.23	1.20	1.07
Asset Turnover	1.48	1.35	1.35	1.41	1.40

Market ValuationÂ USD (mil)
Enterprise Value	485.7	.	Price/Sales (TTM)	0.05
Enterprise Value/Revenue (TTM)	0.27	.	Price/Book (MRQ)	0.43
Enterprise Value/EBITDA (TTM)	15.97	.	Market Cap	87.3

Ratio Comparisons

Traded: New York Stock Exchange: ZLC	Financials in: USD (actual units)
Industry: Retail (Specialty)	As of 27-Apr-2012
Sector: Services

	Company	Industry	Sector	S&P 500
Valuation Ratios
P/E Excluding Extraordinary (TTM)	-	21.45	26.53	19.68
P/E High Excluding Extraordinary - Last 5 Yrs	21.62	25.00	28.03	32.79
P/E Low Excluding Extraordinary - Last 5 Yrs	21.62	10.32	11.18	10.71
Beta	3.18	1.18	0.91	1.00
Price/Revenue (TTM)	0.05	1.27	2.87	2.57
Price/Book (MRQ)	0.43	3.31	4.17	3.67
Price to Tangible Book (MRQ)	0.86	3.85	6.61	5.21
Price to Cash Flow Per Share (TTM)	-	14.06	14.95	14.22
Price to Free Cash Flow Per Share (TTM)	-	24.90	25.61	26.26

Dividends
Dividend Yield	-	1.57%	2.91%	2.26%
Dividend Per Share - 5 Yr Avg	0.00	0.64	1.96	1.99
Dividend 5 Yr Growth	-	-21.00%	-1.39%	0.08%
Payout Ratio (TTM)	-	8.41%	11.60%	25.98%

Growth Rates (%)
Revenue (MRQ) vs Qtr 1 Yr Ago	5.96%	12.43%	-0.77%	15.58%
Revenue (TTM) vs TTM 1 Yr Ago	8.78%	10.84%	-4.27%	17.69%
Revenue 5 Yr Growth	-4.15%	9.32%	23.25%	8.97%
EPS (MRQ) vs Qtr 1 Yr Ago	4.87%	30.89%	12.66%	19.49%
EPS (TTM) vs TTM 1 Yr Ago	57.72%	37.83%	17.36%	32.55%
EPS 5 Yr Growth	-	10.63%	8.65%	9.86%
Capital Spending 5 Yr Growth	-27.49%	-3.85%	-14.30%	-2.04%

Financial Strength
Quick Ratio (MRQ)	0.15	0.61	0.63	1.24
Current Ratio (MRQ)	1.93	2.11	0.97	1.79
LT Debt/Equity (MRQ)	2.10	0.51	1.48	0.64
Total Debt/Equity (MRQ)	2.10	0.58	1.73	0.73
Interest Coverage (TTM)	-0.23	13.90	4.20	13.80

Profitability Ratios (%)
Gross Margin (TTM)	51.17%	37.85%	37.46%	45.21%
Gross Margin - 5 Yr Avg	49.81%	37.91%	39.96%	44.91%
EBITD Margin (TTM)	1.69%	12.91%	8.34%	24.43%
EBITD Margin - 5 Yr Avg	0.15%	11.51%	13.48%	22.84%
Operating Margin (TTM)	-0.49%	10.63%	10.36%	20.63%
Operating Margin - 5 Yr Avg	-2.76%	8.93%	2.67%	18.28%
Pretax Margin (TTM)	-2.61%	9.35%	6.99%	17.95%
Pretax Margin - 5 Yr Avg	-4.14%	8.10%	5.24%	17.10%
Net Profit Margin (TTM)	-2.52%	5.93%	4.44%	13.65%
Net Profit Margin - 5 Yr Avg	-3.53%	5.06%	2.82%	12.10%
Effective Tax Rate (TTM)	-	36.81%	29.02%	28.45%
Effective Tax rate - 5 Yr Avg	-	36.54%	28.67%	29.92%

Management Effectiveness (%)
Return on Assets (TTM)	-3.66%	8.25%	0.41%	8.54%
Return on Assets - 5 Yr Avg	-4.92%	7.58%	3.69%	8.40%
Return on Investment (TTM)	-5.65%	9.88%	3.14%	7.90%
Return on Investment - 5 Yr Avg	-6.83%	8.99%	4.63%	8.27%
Return on Equity (TTM)	-20.35%	15.46%	-2.30%	19.72%
Return on Equity - 5 Yr Avg	-12.50%	12.04%	14.07%	20.06%

Efficiency
Revenue/Employee (TTM)	143,163.10	316,828.32	764,536.05	927,613.77
Net Income/Employee (TTM)	-3,604.84	17,978.12	144,529.55	116,121.92
Receivables Turnover (TTM)	-	35.53	16.95	13.25
Inventory Turnover (TTM)	1.11	3.95	17.44	14.53
Asset Turnover (TTM)	1.46	1.64	1.00	0.93

Annual Ratios

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Jul-2011	31-Jul-2010	31-Jul-2009	31-Jul-2008	31-Jul-2007
Financial Strength
Current Ratio	1.98	1.93	2.29	2.74	3.13
Quick/Acid Test Ratio	0.09	0.07	0.07	0.17	0.10
Working Capital	399.6	372.1	460.9	613.7	797.9
Long Term Debt/Equity	1.86	0.92	0.83	0.58	0.25
Total Debt/Equity	1.86	0.96	0.83	0.58	0.25
Long Term Debt/Total Capital	0.65	0.47	0.45	0.37	0.20
Total Debt/Total Capital	0.65	0.49	0.45	0.37	0.20
Payout Ratio	0.00%	0.00%	0.00%	0.00%	0.00%
Effective Tax Rate	-	-	-	-	26.99%
Total Capital	608.3	604.0	684.3	892.8	1,129.9

Efficiency
Asset Turnover	1.48	1.35	1.35	1.41	1.40
Inventory Turnover	1.21	1.11	1.23	1.20	1.07
Days In Inventory	301.30	328.38	296.18	304.91	341.13
Revenue/Employee	138,299	126,274	122,741	137,938	122,317
Operating Income/Employee	-2,212	-9,019	-14,411	463	4,822
EBITDA/Employee	1,068	-5,113	-10,346	4,349	8,037

Profitability
Gross Margin	50.51%	50.37%	46.70%	49.04%	52.18%
Operating Margin	-1.60%	-7.14%	-11.74%	0.34%	3.94%
EBITDA Margin	0.77%	-4.05%	-8.43%	3.15%	6.57%
EBIT Margin	-1.60%	-7.14%	-11.74%	0.34%	3.94%
Pretax Margin	-6.34%	-7.71%	-12.33%	-0.08%	3.06%
Net Profit Margin	-6.43%	-5.93%	-9.35%	-0.30%	2.23%
COGS/Revenue	49.49%	49.63%	53.30%	50.96%	47.82%
SG&A Expense/Revenue	49.33%	52.35%	52.49%	46.39%	45.27%

Management Effectiveness
Return on Assets	-9.49%	-7.98%	-12.57%	-0.43%	3.13%
Return on Equity	-43.02%	-28.10%	-35.38%	-0.88%	5.64%

Valuation
Free Cash Flow/Share	-2.10	0.69	-0.80	0.88	-0.79
Operating Cash Flow/Share	-1.63	1.15	0.08	3.57	0.83

Current Market Multiples
Market Cap/Earnings (TTM)	-1.76
Market Cap/Equity (MRQ)	0.43
Market Cap/Revenue (TTM)	0.05
Market Cap/EBIT (TTM)	-9.90
Market Cap/EBITDA (TTM)	2.87
Enterprise Value/Earnings (TTM)	-9.82
Enterprise Value/Equity (MRQ)	2.40
Enterprise Value/Revenue (TTM)	0.27
Enterprise Value/EBIT (TTM)	-55.09
Enterprise Value/EBITDA (TTM)	15.97

Stock Report

Stock Snapshot

Traded: New York Stock Exchange: ZLC

As of 27-Apr-2012 US Dollars

Recent Price $2.71 EPS $-3.34

52 Week High $6.90 Price/Sales 0.05

52 Week Low $2.06 Price/Book 0.41

Avg. Volume (mil) 0.38 Beta 3.18

Market Value (mil) $87.29

Price % Change Rel S&P 500%

4 Week -12.30% -11.98%

13 Week -7.19% -12.94%

52 Week -24.93% -27.22%

Year to Date -28.87% -36.26%

2 Year Weekly End Price & Volume

Stock History

Market Cap History
	31-Jan-12	% Chg	31-Oct-11	% Chg	31-Jul-11	% Chg	30-Apr-11	% Chg	31-Jan-11	% Chg
Total Common Shares Outstanding	32	0.1	32	0.1	32	0.0	32	0.1	32	0.0
Market Cap	91.8	-22.7	118.8	-34.2	180.4	52.5	118.3	-21.1	150.1	82.5

Yearly Price History
	2012	% Chg	2011	% Chg	2010	% Chg	2009	% Chg	2008	% Chg
High Price	4.00	-42.0	6.90	35.8	5.08	-40.3	8.51	-79.8	42.23	40.1
Low Price	2.54	23.3	2.06	52.6	1.35	51.7	0.89	-69.6	2.93	-80.9
Year End Price	2.71	-28.9	3.81	-10.6	4.26	56.6	2.72	-18.3	3.33	-79.3

Monthly Price History
Price Ending Date	Open	High	Low	Close	Volume
27-Apr-12	3.09	3.14	2.54	2.71	4,207,803
30-Mar-12	3.23	3.50	2.98	3.09	6,184,603
29-Feb-12	2.89	3.60	2.73	3.21	12,519,478
31-Jan-12	3.95	4.00	2.75	2.85	11,865,072
30-Dec-11	3.42	4.16	3.32	3.81	10,940,193
30-Nov-11	3.55	4.00	3.09	3.44	12,716,499
31-Oct-11	2.82	4.00	2.06	3.69	19,602,328
30-Sep-11	4.11	4.35	2.79	2.85	15,023,865
31-Aug-11	5.88	6.19	3.57	4.08	20,794,199
29-Jul-11	5.54	6.90	5.27	5.61	12,257,800
30-Jun-11	6.15	6.81	4.75	5.60	22,872,147
31-May-11	3.68	6.60	3.23	6.26	19,560,078
29-Apr-11	4.00	4.28	3.60	3.68	5,365,478

Annual Income Statement

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Jul-2011	31-Jul-2010	31-Jul-2009	31-Jul-2008	31-Jul-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Jul-2011	Updated Normal 31-Jul-2010	Restated Normal 31-Jul-2010	Restated Normal 31-Jul-2009	Restated Normal 31-Jul-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified

Net Sales	1,742.6	1,616.3	1,779.7	2,138.0	2,152.8
Revenue	1,742.6	1,616.3	1,779.7	2,138.0	2,152.8
Total Revenue	1,742.6	1,616.3	1,779.7	2,138.0	2,152.8

Cost of Revenue	862.5	802.2	948.6	1,089.6	1,029.6
Cost of Revenue, Total	862.5	802.2	948.6	1,089.6	1,029.6
Gross Profit	880.1	814.1	831.2	1,048.5	1,123.2

Selling/General/Administrative Expense	859.6	846.2	934.2	991.8	974.6
Total Selling/General/Administrative Expenses	859.6	846.2	934.2	991.8	974.6
Depreciation	41.3	50.0	58.9	60.2	56.6
Depreciation/Amortization	41.3	50.0	58.9	60.2	56.6
Investment Income - Operating	-	-	-	-	7.2
Interest/Investment Income - Operating	-	-	-	-	7.2
Interest Expense (Income) - Net Operating Total	-	-	-	-	7.2
Impairment-Assets Held for Use	6.8	29.9	19.9	1.9	-
Other Unusual Expense (Income)	0.3	3.4	27.0	0.0	0.0
Unusual Expense (Income)	7.0	33.4	46.9	1.9	0.0
Other, Net	-	0.0	0.0	-12.6	-
Other Operating Expenses, Total	-	0.0	0.0	-12.6	-
Total Operating Expense	1,770.4	1,731.8	1,988.7	2,130.9	2,067.9

Operating Income	-27.9	-115.4	-209.0	7.2	84.9

Interest Expense - Non-Operating	-82.6	-15.7	-10.4	-12.4	-19.0
Interest Expense, Net Non-Operating	-82.6	-15.7	-10.4	-12.4	-19.0
Interest Income (Expense) - Net Non-Operating Total	-82.6	-15.7	-10.4	-12.4	-19.0
Other Non-Operating Income (Expense)	0.0	6.6	0.0	3.5	0.0
Other, Net	0.0	6.6	0.0	3.5	0.0
Income Before Tax	-110.5	-124.5	-219.4	-1.7	65.9

Total Income Tax	1.6	-28.8	-53.0	4.8	17.8
Income After Tax	-112.0	-95.8	-166.3	-6.5	48.1

Net Income Before Extraord Items	-112.0	-95.8	-166.3	-6.5	48.1
Discontinued Operations	-0.3	2.1	-23.2	7.1	11.1
Total Extraord Items	-0.3	2.1	-23.2	7.1	11.1
Net Income	-112.3	-93.7	-189.5	0.6	59.3

Income Available to Common Excl Extraord Items	-112.0	-95.8	-166.3	-6.5	48.1

Income Available to Common Incl Extraord Items	-112.3	-93.7	-189.5	0.6	59.3

Basic/Primary Weighted Average Shares	32.1	32.1	31.9	42.4	48.7
Basic EPS Excl Extraord Items	-3.49	-2.99	-5.21	-0.15	0.99
Basic/Primary EPS Incl Extraord Items	-3.50	-2.92	-5.94	0.01	1.22
Dilution Adjustment	0.0	0.0	0.0	0.0	-
Diluted Net Income	-112.3	-93.7	-189.5	0.6	59.3
Diluted Weighted Average Shares	32.1	32.1	31.9	42.4	49.0
Diluted EPS Excl Extraord Items	-3.49	-2.99	-5.21	-0.15	0.98
Diluted EPS Incl Extraord Items	-3.50	-2.92	-5.94	0.01	1.21
Dividends per Share - Common Stock Primary Issue	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Interest Expense, Supplemental	82.6	15.7	10.4	12.4	19.0
Depreciation, Supplemental	41.3	50.0	58.9	60.2	56.6
Total Special Items	7.0	33.4	46.9	1.9	0.0
Normalized Income Before Tax	-103.4	-91.2	-172.4	0.2	65.9

Effect of Special Items on Income Taxes	2.5	11.7	16.4	0.7	0.0
Inc Tax Ex Impact of Sp Items	4.0	-17.1	-36.6	5.4	17.8
Normalized Income After Tax	-107.5	-74.1	-135.8	-5.2	48.1

Normalized Inc. Avail to Com.	-107.5	-74.1	-135.8	-5.2	48.1

Basic Normalized EPS	-3.34	-2.31	-4.26	-0.12	0.99
Diluted Normalized EPS	-3.34	-2.31	-4.26	-0.12	0.98
Rental Expenses	195.4	195.5	208.1	213.1	205.5
Advertising Expense, Supplemental	76.5	75.8	87.9	96.3	93.4
Reported Operating Profit	-	-	-	-	84.9
Normalized EBIT	-20.8	-82.1	-162.0	9.1	92.0
Normalized EBITDA	20.5	-32.1	-103.1	69.3	148.6
Current Tax - Domestic	-9.6	-32.8	0.5	2.3	-4.1
Current Tax - Foreign	5.0	4.1	6.8	17.7	12.4
Current Tax - Local	0.9	0.3	0.9	0.7	1.8
Current Tax - Total	-3.7	-28.4	8.2	20.7	10.2
Deferred Tax - Domestic	5.1	1.1	-60.1	-11.0	9.6
Deferred Tax - Foreign	0.2	-1.5	1.3	-5.7	-3.7
Deferred Tax - Local	0.0	0.0	-2.4	0.8	1.6
Deferred Tax - Total	5.3	-0.4	-61.2	-15.9	7.6
Income Tax - Total	1.6	-28.8	-53.0	4.8	17.8
Defined Contribution Expense - Domestic	-	-	1.8	2.1	2.9
Total Pension Expense	-	-	1.8	2.1	2.9

Interim Income Statement

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Jan-2012	31-Oct-2011	31-Jul-2011	30-Apr-2011	31-Jan-2011
Period Length	3 Months	3 Months	3 Months	3 Months	3 Months
UpdateType/Date	Updated Normal 31-Jan-2012	Updated Normal 31-Oct-2011	Updated Normal 31-Jul-2011	Updated Normal 30-Apr-2011	Updated Normal 31-Jan-2011
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1

Net Sales	663.8	351.0	377.3	411.8	626.4
Revenue	663.8	351.0	377.3	411.8	626.4
Total Revenue	663.8	351.0	377.3	411.8	626.4

Cost of Revenue	328.3	163.3	183.8	205.4	311.3
Cost of Revenue, Total	328.3	163.3	183.8	205.4	311.3
Gross Profit	335.5	187.7	193.5	206.4	315.1

Selling/General/Administrative Expense	281.9	199.8	204.0	202.3	258.1
Total Selling/General/Administrative Expenses	281.9	199.8	204.0	202.3	258.1
Depreciation	9.3	9.9	10.3	9.8	10.6
Depreciation/Amortization	9.3	9.9	10.3	9.8	10.6
Other Unusual Expense (Income)	1.2	0.5	3.3	-0.3	2.9
Unusual Expense (Income)	1.2	0.5	3.3	-0.3	2.9
Total Operating Expense	620.6	373.5	401.4	417.3	582.8

Operating Income	43.2	-22.5	-24.1	-5.4	43.6

Interest Expense - Non-Operating	-10.4	-9.9	-9.2	-8.7	-9.5
Interest Expense, Net Non-Operating	-10.4	-9.9	-9.2	-8.7	-9.5
Interest Income (Expense) - Net Non-Operating Total	-10.4	-9.9	-9.2	-8.7	-9.5
Other Non-Operating Income (Expense)	-	-	0.0	-	-
Other, Net	-	-	0.0	-	-
Income Before Tax	32.8	-32.4	-33.3	-14.1	34.1

Total Income Tax	3.8	-0.7	-0.6	-4.2	6.4
Income After Tax	28.9	-31.7	-32.7	-9.9	27.7

Net Income Before Extraord Items	28.9	-31.7	-32.7	-9.9	27.7
Discontinued Operations	-0.1	-0.2	0.1	0.9	-0.5
Total Extraord Items	-0.1	-0.2	0.1	0.9	-0.5
Net Income	28.8	-31.9	-32.6	-9.0	27.2

Income Available to Common Excl Extraord Items	28.9	-31.7	-32.7	-9.9	27.7

Income Available to Common Incl Extraord Items	28.8	-31.9	-32.6	-9.0	27.2

Basic/Primary Weighted Average Shares	32.2	32.2	32.2	32.1	32.1
Basic EPS Excl Extraord Items	0.90	-0.99	-1.02	-0.31	0.86
Basic/Primary EPS Incl Extraord Items	0.90	-0.99	-1.02	-0.28	0.85
Dilution Adjustment	-	0.0	0.0	0.0	-
Diluted Net Income	28.8	-31.9	-32.6	-9.0	27.2
Diluted Weighted Average Shares	37.2	32.2	32.2	32.1	37.4
Diluted EPS Excl Extraord Items	0.78	-0.99	-1.02	-0.31	0.74
Diluted EPS Incl Extraord Items	0.77	-0.99	-1.02	-0.28	0.73
Dividends per Share - Common Stock Primary Issue	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Interest Expense, Supplemental	10.4	9.9	9.2	8.7	9.5
Depreciation, Supplemental	9.3	9.9	10.3	9.8	10.6
Total Special Items	1.2	0.5	3.3	-0.3	2.9
Normalized Income Before Tax	33.9	-31.9	-29.9	-14.4	37.0

Effect of Special Items on Income Taxes	0.1	0.2	1.2	-0.1	0.5
Inc Tax Ex Impact of Sp Items	4.0	-0.5	0.6	-4.3	6.9
Normalized Income After Tax	29.9	-31.4	-30.5	-10.1	30.1

Normalized Inc. Avail to Com.	29.9	-31.4	-30.5	-10.1	30.1

Basic Normalized EPS	0.93	-0.98	-0.95	-0.31	0.94
Diluted Normalized EPS	0.80	-0.98	-0.95	-0.31	0.80
Reported Operating Profit	43.2	-	-	-	-
Normalized EBIT	44.3	-22.0	-20.8	-5.7	46.5
Normalized EBITDA	53.6	-12.1	-10.5	4.1	57.0

Annual Balance Sheet

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Jul-2011	31-Jul-2010	31-Jul-2009	31-Jul-2008	31-Jul-2007
UpdateType/Date	Updated Normal 31-Jul-2011	Restated Normal 31-Jul-2011	Updated Normal 31-Jul-2009	Restated Normal 31-Jul-2009	Updated Normal 31-Jul-2007
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified

Cash & Equivalents	35.1	26.2	25.0	61.3	37.6
Cash and Short Term Investments	35.1	26.2	25.0	61.3	37.6
Total Inventory	720.8	703.1	740.3	799.2	1,021.2
Prepaid Expenses	20.5	20.1	20.8	22.5	-
Other Current Assets	29.3	21.9	31.1	83.9	113.5
Other Current Assets, Total	29.3	21.9	31.1	83.9	113.5
Total Current Assets	805.7	771.3	817.2	966.9	1,172.3

Buildings	236.3	232.1	237.2	256.4	266.4
Machinery/Equipment	464.7	448.4	439.2	452.6	465.2
Construction in Progress	3.8	13.3	14.3	25.7	12.0
Property/Plant/Equipment - Gross	704.8	693.8	690.7	734.8	743.6
Accumulated Depreciation	-563.1	-520.4	-452.6	-436.9	-439.2
Property/Plant/Equipment - Net	141.8	173.4	238.1	297.9	304.4
Goodwill, Net	104.6	98.4	94.6	103.7	100.7
Deferred Income Tax - Long Term Asset	93.0	75.5	51.5	10.9	1.3
Other Long Term Assets	44.8	52.7	29.5	35.9	35.2
Other Long Term Assets, Total	137.8	128.2	81.0	46.8	36.5
Total Assets	1,189.9	1,171.3	1,231.0	1,415.3	1,613.9

Accounts Payable	143.9	157.2	124.4	154.1	142.6
Accrued Expenses	56.9	56.8	64.8	70.0	99.1
Notes Payable/Short Term Debt	0.0	0.0	0.0	0.0	0.0
Current Portion - Long Term Debt/Capital Leases	0.0	11.3	-	-	-
Customer Advances	94.2	78.1	60.2	41.8	29.5
Income Taxes Payable	16.7	15.0	17.1	21.6	29.7
Deferred Income Tax - Current Liability	92.7	70.0	46.4	65.7	73.5
Other Current Liabilities	1.7	10.8	43.5	0.0	-
Other Current liabilities, Total	205.3	174.0	167.1	129.2	132.7
Total Current Liabilities	406.2	399.2	356.3	353.2	374.5

Long Term Debt	395.5	284.7	310.5	326.3	227.3
Total Long Term Debt	395.5	284.7	310.5	326.3	227.3
Total Debt	395.5	295.9	310.5	326.3	227.3

Deferred Income Tax - LT Liability	-	-	-	-	0.0
Deferred Income Tax	-	-	-	-	0.0
Reserves	6.2	5.4	5.8	5.8	7.1
Other Long Term Liabilities	169.3	173.9	184.6	163.5	102.5
Other Liabilities, Total	175.5	179.4	190.3	169.3	109.6
Total Liabilities	977.1	863.3	857.2	848.8	711.4

Common Stock	0.5	0.5	0.5	0.5	0.5
Common Stock	0.5	0.5	0.5	0.5	0.5
Additional Paid-In Capital	161.6	160.6	147.3	144.5	138.0
Retained Earnings (Accumulated Deficit)	451.7	564.0	657.7	847.2	868.1
Treasury Stock - Common	-464.3	-465.6	-469.0	-476.7	-150.0
Other Comprehensive Income	63.4	48.4	37.3	51.0	45.9
Other Equity, Total	63.4	48.4	37.3	51.0	45.9
Total Equity	212.8	308.0	373.8	566.5	902.6

Total Liabilities & Shareholdersâ€™ Equity	1,189.9	1,171.3	1,231.0	1,415.3	1,613.9

Shares Outstanding - Common Stock Primary Issue	32.2	32.1	32.0	31.6	49.1
Total Common Shares Outstanding	32.2	32.1	32.0	31.6	49.1
Treasury Shares - Common Stock Primary Issue	22.6	22.6	22.8	23.1	5.6
Employees	12,600	12,800	14,500	15,500	17,600
Number of Common Shareholders	556	570	504	497	685
Deferred Revenue - Current	94.2	78.1	60.2	41.8	29.5
Deferred Revenue - Long Term	138.0	140.7	150.0	131.2	69.5
Total Long Term Debt, Supplemental	395.5	316.7	311.0	326.0	227.0
Long Term Debt Maturing within 1 Year	0.0	11.3	103.7	0.0	0.0
Long Term Debt Maturing in Year 2	0.0	0.0	103.7	0.0	0.0
Long Term Debt Maturing in Year 3	255.0	0.0	103.7	0.0	0.0
Long Term Debt Maturing in Year 4	140.5	165.0	0.0	163.0	113.5
Long Term Debt Maturing in Year 5	0.0	140.5	0.0	163.0	113.5
Long Term Debt Maturing in 2-3 Years	255.0	0.0	207.3	0.0	0.0
Long Term Debt Maturing in 4-5 Years	140.5	305.5	0.0	326.0	227.0
Long Term Debt Matur. in Year 6 & Beyond	0.0	0.0	0.0	0.0	0.0
Total Operating Leases, Supplemental	686.4	809.7	861.7	996.8	1,063.5
Operating Lease Payments Due in Year 1	169.6	179.6	174.3	189.7	203.2
Operating Lease Payments Due in Year 2	139.6	155.6	147.5	167.9	177.4
Operating Lease Payments Due in Year 3	113.1	128.3	123.2	141.4	155.0
Operating Lease Payments Due in Year 4	89.8	104.8	107.5	117.2	127.4
Operating Lease Payments Due in Year 5	70.2	84.3	94.1	102.2	101.4
Operating Lease Pymts. Due in 2-3 Years	252.7	283.9	270.7	309.3	332.4
Operating Lease Pymts. Due in 4-5 Years	159.9	189.1	201.6	219.4	228.8
Oper. Lse. Pymts. Due in Year 6 & Beyond	104.2	157.1	215.1	278.3	299.1

Interim Balance Sheet

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Jan-2012	31-Oct-2011	31-Jul-2011	30-Apr-2011	31-Jan-2011
UpdateType/Date	Updated Normal 31-Jan-2012	Updated Normal 31-Oct-2011	Updated Normal 31-Jul-2011	Updated Normal 30-Apr-2011	Restated Normal 31-Jan-2012
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1

Cash & Equivalents	27.1	30.1	35.1	36.9	31.4
Cash and Short Term Investments	27.1	30.1	35.1	36.9	31.4
Total Inventory	815.4	856.9	720.8	756.4	776.9
Other Current Assets	42.2	52.7	49.8	37.6	38.4
Other Current Assets, Total	42.2	52.7	49.8	37.6	38.4
Total Current Assets	884.7	939.8	805.7	830.9	846.7

Property/Plant/Equipment - Gross	701.0	701.3	704.8	704.1	696.7
Accumulated Depreciation	-569.3	-567.0	-563.1	-555.0	-542.0
Property/Plant/Equipment - Net	131.7	134.3	141.8	149.1	154.6
Goodwill, Net	100.5	101.0	104.6	105.3	100.6
Deferred Income Tax - Long Term Asset	93.3	93.4	93.0	63.8	77.8
Other Long Term Assets	46.4	47.4	44.8	44.1	42.6
Other Long Term Assets, Total	139.7	140.8	137.8	107.9	120.4
Total Assets	1,256.7	1,315.8	1,189.9	1,193.3	1,222.4

Payable/Accrued	277.6	300.4	219.3	332.3	245.4
Notes Payable/Short Term Debt	0.0	0.0	0.0	0.0	0.0
Current Portion - Long Term Debt/Capital Leases	-	-	-	0.0	-
Customer Advances	87.5	82.5	94.2	-	90.2
Deferred Income Tax - Current Liability	93.0	93.0	92.7	58.7	76.4
Other Current liabilities, Total	180.5	175.5	186.9	58.7	166.6
Total Current Liabilities	458.1	475.9	406.2	391.0	412.1

Long Term Debt	425.5	494.0	395.5	375.5	385.5
Total Long Term Debt	425.5	494.0	395.5	375.5	385.5
Total Debt	425.5	494.0	395.5	375.5	385.5

Other Long Term Liabilities	170.8	172.4	175.5	180.8	180.9
Other Liabilities, Total	170.8	172.4	175.5	180.8	180.9
Total Liabilities	1,054.4	1,142.3	977.1	947.3	978.4

Common Stock	0.5	0.5	0.5	0.5	0.5
Common Stock	0.5	0.5	0.5	0.5	0.5
Additional Paid-In Capital	161.7	162.1	161.6	160.9	161.1
Retained Earnings (Accumulated Deficit)	448.7	419.8	451.7	484.3	493.3
Treasury Stock - Common	-463.0	-464.2	-464.3	-464.8	-464.9
Other Comprehensive Income	54.4	55.3	63.4	65.1	53.9
Other Equity, Total	54.4	55.3	63.4	65.1	53.9
Total Equity	202.3	173.5	212.8	246.0	244.0

Total Liabilities & Shareholdersâ€™ Equity	1,256.7	1,315.8	1,189.9	1,193.3	1,222.4

Shares Outstanding - Common Stock Primary Issue	32.2	32.2	32.2	32.2	32.1
Total Common Shares Outstanding	32.2	32.2	32.2	32.2	32.1
Treasury Shares - Common Stock Primary Issue	22.5	22.5	22.6	22.6	22.6
Deferred Revenue - Current	87.5	82.5	94.2	-	90.2
Deferred Revenue - Long Term	134.9	137.5	138.0	-	141.9

Annual Cash Flows

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Jul-2011	31-Jul-2010	31-Jul-2009	31-Jul-2008	31-Jul-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Jul-2011	Updated Normal 31-Jul-2010	Restated Normal 31-Jul-2010	Reclassified Normal 31-Jul-2010	Reclassified Normal 31-Jul-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified

Net Income/Starting Line	-112.3	-93.7	-189.5	0.6	59.3
Depreciation	41.3	50.0	58.9	60.2	57.6
Depreciation/Depletion	41.3	50.0	58.9	60.2	57.6
Deferred Taxes	5.3	0.0	-61.0	-14.6	7.1
Discontinued Operations	-5.1	-17.5	23.2	-28.7	-9.8
Unusual Items	8.2	22.6	31.5	5.4	3.8
Other Non-Cash Items	36.7	8.9	6.4	-7.5	6.1
Non-Cash Items	39.8	14.1	61.0	-30.8	0.1
Inventories	-8.1	42.4	53.2	71.1	-97.0
Other Assets	-8.9	12.2	56.6	1.2	-8.2
Payable/Accrued	-3.5	24.2	1.6	-34.5	-34.6
Other Liabilities	-6.0	-12.3	21.9	59.6	56.5
Changes in Working Capital	-26.4	66.5	133.2	97.5	-83.4
Cash from Operating Activities	-52.3	36.9	2.7	113.0	40.6

Purchase of Fixed Assets	-15.3	-14.7	-28.4	-85.1	-79.3
Capital Expenditures	-15.3	-14.7	-28.4	-85.1	-79.3
Sale/Maturity of Investment	6.1	2.4	25.8	8.3	8.1
Purchase of Investments	-9.4	-3.0	-22.7	-10.4	-11.3
Other Investing Cash Flow	-	0.0	0.0	225.1	-7.2
Other Investing Cash Flow Items, Total	-3.2	-0.6	3.1	222.9	-10.3
Cash from Investing Activities	-18.6	-15.2	-25.3	137.7	-89.6

Other Financing Cash Flow	0.0	-25.5	0.2	0.1	1.4
Financing Cash Flow Items	0.0	-25.5	0.2	0.1	1.4
Repurchase/Retirement of Common	-	0.0	0.0	-326.7	0.0
Common Stock, Net	-	0.0	0.0	-326.7	0.0
Options Exercised	0.1	0.0	6.2	2.0	17.8
Issuance (Retirement) of Stock, Net	0.1	0.0	6.2	-324.7	17.8
Short Term Debt Issued	3,604.8	4,465.1	5,107.2	3,630.8	3,977.6
Short Term Debt Reduction	-3,514.8	-4,610.6	-5,123.0	-3,531.8	-3,953.1
Short Term Debt, Net	90.0	-145.5	-15.8	99.0	24.5
Long Term Debt Issued	0.0	150.0	0.0	0.0	-
Long Term Debt Reduction	-11.3	-	-	-	-
Long Term Debt, Net	-11.3	150.0	0.0	0.0	-
Issuance (Retirement) of Debt, Net	78.8	4.5	-15.8	99.0	24.5
Cash from Financing Activities	78.8	-21.0	-9.4	-225.7	43.7

Foreign Exchange Effects	1.0	0.5	-4.3	0.2	0.3
Net Change in Cash	8.9	1.2	-36.4	25.2	-5.0

Net Cash - Beginning Balance	26.2	25.0	61.3	36.2	42.6
Net Cash - Ending Balance	35.1	26.2	25.0	61.3	37.6
Cash Interest Paid	32.1	10.8	11.0	12.9	19.2
Cash Taxes Paid	1.0	30.0	6.4	1.0	13.1

Interim Cash Flows

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Jan-2012	31-Oct-2011	31-Jul-2011	30-Apr-2011	31-Jan-2011
Period Length	6 Months	3 Months	12 Months	9 Months	6 Months
UpdateType/Date	Updated Normal 31-Jan-2012	Updated Normal 31-Oct-2011	Updated Normal 31-Jul-2011	Updated Normal 30-Apr-2011	Updated Normal 31-Jan-2011
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1

Net Income/Starting Line	-3.0	-31.9	-112.3	-79.7	-70.7
Depreciation	19.2	9.9	41.3	31.1	21.3
Depreciation/Depletion	19.2	9.9	41.3	31.1	21.3
Deferred Taxes	-0.1	-0.2	5.3	-0.5	3.9
Discontinued Operations	-0.4	-0.2	-5.1	-4.7	-1.2
Unusual Items	2.2	0.4	8.2	4.2	3.9
Other Non-Cash Items	3.3	1.6	36.7	35.4	34.1
Non-Cash Items	5.1	1.8	39.8	34.9	36.7
Inventories	-101.1	-141.8	-8.1	-42.5	-70.5
Other Assets	8.0	-3.3	-8.9	3.0	2.9
Payable/Accrued	59.6	82.8	-3.5	16.1	16.5
Other Liabilities	-11.9	-12.9	-6.0	-0.9	2.8
Changes in Working Capital	-45.5	-75.2	-26.4	-24.4	-48.3
Cash from Operating Activities	-24.3	-95.6	-52.3	-38.7	-57.1

Purchase of Fixed Assets	-10.0	-4.3	-15.3	-8.1	-5.5
Capital Expenditures	-10.0	-4.3	-15.3	-8.1	-5.5
Sale/Maturity of Investment	1.1	0.1	6.1	5.1	2.4
Purchase of Investments	-4.6	-3.3	-9.4	-7.2	-3.4
Other Investing Cash Flow Items, Total	-3.4	-3.2	-3.2	-2.2	-1.1
Cash from Investing Activities	-13.4	-7.5	-18.6	-10.3	-6.6

Other Financing Cash Flow	-	-	0.0	-	-
Financing Cash Flow Items	-	-	0.0	-	-
Options Exercised	-	-	0.1	-	-
Issuance (Retirement) of Stock, Net	-	-	0.1	-	-
Short Term Debt Issued	2,263.9	1,040.9	3,604.8	2,740.3	1,992.0
Short Term Debt Reduction	-2,233.9	-942.4	-3,514.8	-2,670.3	-1,912.0
Short Term Debt, Net	30.0	98.5	90.0	70.0	80.0
Long Term Debt Issued	-	-	0.0	-	-
Long Term Debt Reduction	0.0	0.0	-11.3	-11.3	-11.3
Long Term Debt, Net	0.0	0.0	-11.3	-11.3	-11.3
Issuance (Retirement) of Debt, Net	30.0	98.5	78.8	58.8	68.8
Cash from Financing Activities	30.0	98.5	78.8	58.8	68.8

Foreign Exchange Effects	-0.3	-0.4	1.0	0.8	0.2
Net Change in Cash	-8.0	-5.0	8.9	10.6	5.2

Net Cash - Beginning Balance	35.1	35.1	26.2	26.2	26.2
Net Cash - Ending Balance	27.1	30.1	35.1	36.9	31.4
Cash Interest Paid	-	-	32.1	-	-
Cash Taxes Paid	-	-	1.0	-	-

Annual Income Statement

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Jul-2011	31-Jul-2010	31-Jul-2009	31-Jul-2008	31-Jul-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Jul-2011	Updated Normal 31-Jul-2010	Restated Normal 31-Jul-2010	Restated Normal 31-Jul-2009	Restated Normal 31-Jul-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	KPMG LLP
Auditor Opinion	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified

Revenues	1,742.6	1,616.3	1,779.7	2,138.0	2,152.8
Total Revenue	1,742.6	1,616.3	1,779.7	2,138.0	2,152.8

Cost of Sales	862.5	802.2	948.6	1,089.6	1,029.6
Selling/general & administrative exp	859.6	846.2	934.2	985.0	967.6
Insur. Ops. Costs	-	-	-	6.7	6.9
Depreciation/Amort.	41.3	50.0	58.9	60.2	56.6
Impairment Charge	6.8	29.9	14.9	1.9	-
Unusual Items /Other Charges	0.3	3.4	27.0	0.0	-
Impair. Goodwill	0.0	0.0	5.0	0.0	-
Change in vacation policy	-	0.0	0.0	-12.6	-
Derivative (Gains)/Losses	-	-	-	-	7.2
Benefit from settlement of retirement pl	-	-	-	-	0.0
Total Operating Expense	1,770.4	1,731.8	1,988.7	2,130.9	2,067.9

Other Income	0.0	6.6	0.0	3.5	0.0
Interest expense	-82.6	-15.7	-10.4	-12.4	-19.0
Net Income Before Taxes	-110.5	-124.5	-219.4	-1.7	65.9

Provision for Income Taxes	1.6	-28.8	-53.0	4.8	17.8
Net Income After Taxes	-112.0	-95.8	-166.3	-6.5	48.1

Net Income Before Extra. Items	-112.0	-95.8	-166.3	-6.5	48.1
Earnings from discontinued operations n	-0.3	2.1	-23.2	7.1	11.1
Net Income	-112.3	-93.7	-189.5	0.6	59.3

Income Available to Com Excl ExtraOrd	-112.0	-95.8	-166.3	-6.5	48.1

Income Available to Com Incl ExtraOrd	-112.3	-93.7	-189.5	0.6	59.3

Basic Weighted Average Shares	32.1	32.1	31.9	42.4	48.7
Basic EPS Excluding ExtraOrdinary Items	-3.49	-2.99	-5.21	-0.15	0.99
Basic EPS Including ExtraOrdinary Item	-3.50	-2.92	-5.94	0.01	1.22
Dilution Adjustment	0.0	0.0	0.0	0.0	-
Diluted Net Income	-112.3	-93.7	-189.5	0.6	59.3
Diluted Weighted Average Shares	32.1	32.1	31.9	42.4	49.0
Diluted EPS Excluding ExtraOrd Items	-3.49	-2.99	-5.21	-0.15	0.98
Diluted EPS Including ExtraOrd Items	-3.50	-2.92	-5.94	0.01	1.21
DPS-Common Stock	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Normalized Income Before Taxes	-103.4	-91.2	-172.4	0.2	65.9

Inc Tax Ex Impact of Sp Items	4.0	-17.1	-36.6	5.4	17.8
Normalized Income After Taxes	-107.5	-74.1	-135.8	-5.2	48.1

Normalized Inc. Avail to Com.	-107.5	-74.1	-135.8	-5.2	48.1

Basic Normalized EPS	-3.34	-2.31	-4.26	-0.12	0.99
Diluted Normalized EPS	-3.34	-2.31	-4.26	-0.12	0.98
Interest Expense	82.6	15.7	10.4	12.4	19.0
Depreciation	41.3	50.0	58.9	60.2	56.6
Advertising Expense	76.5	75.8	87.9	96.3	93.4
Rental Expense	195.4	195.5	208.1	213.1	205.5
Current Tax - Federal	-9.6	-32.8	0.5	2.3	-4.1
Current Tax - Foreign	5.0	4.1	6.8	17.7	12.4
Current Tax - State	0.9	0.3	0.9	0.7	1.8
Current Tax - Total	-3.7	-28.4	8.2	20.7	10.2
Deferred Tax - Federal	5.1	1.1	-60.1	-11.0	9.6
Deferred Tax - Foreign	0.2	-1.5	1.3	-5.7	-3.7
Deferred Tax - State	0.0	0.0	-2.4	0.8	1.6
Deferred Tax - Total	5.3	-0.4	-61.2	-15.9	7.6
Income Tax - Total	1.6	-28.8	-53.0	4.8	17.8
Operating earnings	-	-	-	-	84.9
Defined Contribution Retirement Plan	-	-	1.8	2.1	2.9
Total Pension Expense	-	-	1.8	2.1	2.9

Interim Income Statement

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Jan-2012	31-Oct-2011	31-Jul-2011	30-Apr-2011	31-Jan-2011
Period Length	3 Months	3 Months	3 Months	3 Months	3 Months
UpdateType/Date	Updated Normal 31-Jan-2012	Updated Normal 31-Oct-2011	Updated Normal 31-Jul-2011	Updated Normal 30-Apr-2011	Updated Normal 31-Jan-2011
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1

Revenues	663.8	351.0	377.3	411.8	626.4
Total Revenue	663.8	351.0	377.3	411.8	626.4

Cost of Sales	328.3	163.3	183.8	205.4	311.3
Selling, general and administrative	281.9	199.8	204.0	202.3	258.1
Depreciation and amortization	9.3	9.9	10.3	9.8	10.6
Other Charges	1.2	0.5	3.3	-0.3	2.9
Total Operating Expense	620.6	373.5	401.4	417.3	582.8

Other gains	-	-	0.0	-	-
Interest expense	-10.4	-9.9	-9.2	-8.7	-9.5
Net Income Before Taxes	32.8	-32.4	-33.3	-14.1	34.1

Provision for Income Taxes	3.8	-0.7	-0.6	-4.2	6.4
Net Income After Taxes	28.9	-31.7	-32.7	-9.9	27.7

Net Income Before Extra. Items	28.9	-31.7	-32.7	-9.9	27.7
Earnings (Loss) from Discontinued Operat	-0.1	-0.2	0.1	0.9	-0.5
Net Income	28.8	-31.9	-32.6	-9.0	27.2

Income Available to Com Excl ExtraOrd	28.9	-31.7	-32.7	-9.9	27.7

Income Available to Com Incl ExtraOrd	28.8	-31.9	-32.6	-9.0	27.2

Basic Weighted Average Shares	32.2	32.2	32.2	32.1	32.1
Basic EPS Excluding ExtraOrdinary Items	0.90	-0.99	-1.02	-0.31	0.86
Basic EPS Including ExtraOrdinary Item	0.90	-0.99	-1.02	-0.28	0.85
Dilution Adjustment	-	0.0	0.0	0.0	-
Diluted Net Income	28.8	-31.9	-32.6	-9.0	27.2
Diluted Weighted Average Shares	37.2	32.2	32.2	32.1	37.4
Diluted EPS Excluding ExtraOrd Items	0.78	-0.99	-1.02	-0.31	0.74
Diluted EPS Including ExtraOrd Items	0.77	-0.99	-1.02	-0.28	0.73
DPS-Common Stock	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Normalized Income Before Taxes	33.9	-31.9	-29.9	-14.4	37.0

Inc Tax Ex Impact of Sp Items	4.0	-0.5	0.6	-4.3	6.9
Normalized Income After Taxes	29.9	-31.4	-30.5	-10.1	30.1

Normalized Inc. Avail to Com.	29.9	-31.4	-30.5	-10.1	30.1

Basic Normalized EPS	0.93	-0.98	-0.95	-0.31	0.94
Diluted Normalized EPS	0.80	-0.98	-0.95	-0.31	0.80
Interest Expense	10.4	9.9	9.2	8.7	9.5
Depreciation	9.3	9.9	10.3	9.8	10.6
Operating earnings	43.2	-	-	-	-

Annual Balance Sheet

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Jul-2011	31-Jul-2010	31-Jul-2009	31-Jul-2008	31-Jul-2007
UpdateType/Date	Updated Normal 31-Jul-2011	Restated Normal 31-Jul-2011	Updated Normal 31-Jul-2009	Restated Normal 31-Jul-2009	Updated Normal 31-Jul-2007
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	KPMG LLP
Auditor Opinion	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified

Cash/Equivalents	35.1	26.2	25.0	61.3	37.6
Merchandise Inventories	720.8	703.1	740.3	799.2	1,021.2
Prepaid Rent	20.5	20.1	20.8	22.5	-
Other Assets	29.3	21.9	31.1	83.9	113.5
Total Current Assets	805.7	771.3	817.2	966.9	1,172.3

Building/Lease	236.3	232.1	237.2	256.4	266.4
Furniture	464.7	448.4	439.2	452.6	465.2
Construction	3.8	13.3	14.3	25.7	12.0
Depreciation	-563.1	-520.4	-452.6	-436.9	-439.2
Goodwill	104.6	98.4	94.6	103.7	100.7
Other assets	44.8	52.7	29.5	35.9	35.2
Deferred tax asset	93.0	75.5	51.5	10.9	1.3
Total Assets	1,189.9	1,171.3	1,231.0	1,415.3	1,613.9

Cur. Port. LTD	0.0	11.3	-	-	-
Accounts Payable	143.9	157.2	124.4	154.1	142.6
Accrued Payroll	12.4	7.7	7.4	12.1	45.3
Accrued Taxes	16.7	15.0	17.1	21.6	29.7
Warranty deferred revenue	94.2	78.1	60.2	41.8	29.5
Percentage Rent	10.0	8.8	7.6	12.8	15.5
Other Accrual	34.5	40.4	49.7	45.1	38.3
Bailey Banks & Biddle lease reserve	1.2	5.6	23.2	0.0	-
Store closure reserve	0.6	5.1	20.3	0.0	-
Deferred tax liability	92.7	70.0	46.4	65.7	73.5
Total Current Liabilities	406.2	399.2	356.3	353.2	374.5

Long Term Debt	395.5	284.7	310.5	326.3	227.3
Total Long Term Debt	395.5	284.7	310.5	326.3	227.3

Other Liabs.	-	-	-	-	0.0
Insurance reserve	6.2	5.4	5.8	5.8	7.1
Long-term warranty deferred revenue	138.0	140.7	150.0	127.0	61.1
Long-term deferred servicing fee revenue	-	-	0.0	4.2	8.4
Deferred tax liability	-	-	-	-	0.0
Long-Term Accrued Rent	31.3	33.2	34.5	32.2	33.0
Total Liabilities	977.1	863.3	857.2	848.8	711.4

Common Stock	0.5	0.5	0.5	0.5	0.5
Additional paid-in capital	161.6	160.6	147.3	144.5	138.0
Accumulated other comprehensive income	63.4	48.4	37.3	51.0	45.9
Retained Earning	451.7	564.0	657.7	847.2	868.1
Treasury Stock	-464.3	-465.6	-469.0	-476.7	-150.0
Total Equity	212.8	308.0	373.8	566.5	902.6
Total Liabilities & Shareholders' Equity	1,189.9	1,171.3	1,231.0	1,415.3	1,613.9
S/O-Common Stock	32.2	32.1	32.0	31.6	49.1
Total Common Shares Outstanding	32.2	32.1	32.0	31.6	49.1
T/S-Common Stock	22.6	22.6	22.8	23.1	5.6
Deferred Revenue - Current	94.2	78.1	60.2	41.8	29.5
Deferred Revenue	138.0	140.7	150.0	131.2	69.5
Full-Time Employees	12,600	12,800	14,500	15,500	17,600
Number of Common Shareholders	556	570	504	497	685
Long Term Debt Maturing within 1 Year	0.0	11.3	-	-	-
Long Term Debt Maturing in Year 2	0.0	0.0	-	-	-
LT Debt Maturing 1-3 Years	255.0	0.0	311.0	0.0	0.0
Long Term Debt Maturing in Year 4	140.5	165.0	-	-	-
LT Debt Maturing 4-5 Years	0.0	140.5	0.0	326.0	227.0
Long Term Debt - Remaining Maturities	0.0	0.0	-	-	-
Total Long Term Debt, Supplemental	395.5	316.7	311.0	326.0	227.0
Operating Lease Payable within 1 Year	169.6	179.6	174.3	189.7	203.2
Operating Lease Payable within 2 Years	139.6	155.6	147.5	167.9	177.4
Operating Lease Payable within 3 Years	113.1	128.3	123.2	141.4	155.0
Operating Lease Payable within 4 Years	89.8	104.8	107.5	117.2	127.4
Operating Lease Payable within 5 Years	70.2	84.3	94.1	102.2	101.4
Operating Leases - Remaining Maturities	104.2	157.1	215.1	278.3	299.1
Total Operating Leases	686.4	809.7	861.7	996.8	1,063.5

Interim Balance Sheet

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Jan-2012	31-Oct-2011	31-Jul-2011	30-Apr-2011	31-Jan-2011
UpdateType/Date	Updated Normal 31-Jan-2012	Updated Normal 31-Oct-2011	Updated Normal 31-Jul-2011	Updated Normal 30-Apr-2011	Restated Normal 31-Jan-2012
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1

Cash and Cash Equivalents	27.1	30.1	35.1	36.9	31.4
Merchandise inventories	815.4	856.9	720.8	756.4	776.9
Other Assets	42.2	52.7	49.8	37.6	38.4
Total Current Assets	884.7	939.8	805.7	830.9	846.7

Property and equipment, Gross	701.0	701.3	704.8	704.1	696.7
Accumulated Depreciation	-569.3	-567.0	-563.1	-555.0	-542.0
Goodwill	100.5	101.0	104.6	105.3	100.6
Other assets	46.4	47.4	44.8	44.1	42.6
Deferred tax asset	93.3	93.4	93.0	63.8	77.8
Total Assets	1,256.7	1,315.8	1,189.9	1,193.3	1,222.4

Current Portion of Long Term Debt	-	-	-	0.0	-
Deferred revenue	87.5	82.5	94.2	-	90.2
Accounts payable and accrued liabilities	277.6	300.4	219.3	332.3	245.4
Deferred tax liability	93.0	93.0	92.7	58.7	76.4
Total Current Liabilities	458.1	475.9	406.2	391.0	412.1

Long-term debt, less current portion	425.5	494.0	395.5	375.5	385.5
Total Long Term Debt	425.5	494.0	395.5	375.5	385.5

Deferred revenue	134.9	137.5	138.0	-	141.9
Other liabilities	35.9	34.8	37.5	180.8	39.0
Total Liabilities	1,054.4	1,142.3	977.1	947.3	978.4

Common stock	0.5	0.5	0.5	0.5	0.5
Additional paid-in capital	161.7	162.1	161.6	160.9	161.1
Accumulated other comprehensive income	54.4	55.3	63.4	65.1	53.9
Accumulated earnings	448.7	419.8	451.7	484.3	493.3
Treasury stock	-463.0	-464.2	-464.3	-464.8	-464.9
Total Equity	202.3	173.5	212.8	246.0	244.0

Total Liabilities & Shareholders' Equity	1,256.7	1,315.8	1,189.9	1,193.3	1,222.4

S/O-Common Stock	32.2	32.2	32.2	32.2	32.1
Total Common Shares Outstanding	32.2	32.2	32.2	32.2	32.1
T/S-Common Stock	22.5	22.5	22.6	22.6	22.6
Deferred Revenue - Current	87.5	82.5	94.2	-	90.2
Deferred Revenue - Long Term	134.9	137.5	138.0	-	141.9

Annual Cash Flows

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Jul-2011	31-Jul-2010	31-Jul-2009	31-Jul-2008	31-Jul-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Jul-2011	Updated Normal 31-Jul-2010	Restated Normal 31-Jul-2010	Reclassified Normal 31-Jul-2010	Reclassified Normal 31-Jul-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	KPMG LLP
Auditor Opinion	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified

Net Income	-112.3	-93.7	-189.5	0.6	59.3
Depreciation	41.3	50.0	58.9	60.2	57.6
Goodwill Impairment	0.0	0.0	5.0	0.0	-
Conversion of paid in kind interest to S	0.0	1.7	0.0	0.0	-
Change in vacation policy	-	0.0	0.0	-12.6	0.0
Stock based compensation	2.2	3.9	5.7	4.4	6.1
Deferred Taxes	5.3	0.0	-61.0	-14.6	7.1
Repartriation Impact on Tax Provision	-	-	-	-	0.0
Retiree Medical Plan Termination Impact	-	-	-	-	0.0
(Earnings) loss from discontinued operat	0.3	-2.1	23.2	-7.1	-11.1
Derivative (Gains)/Losses	-	-	-	-	-1.3
Gain on warrants	0.0	-8.3	0.0	0.0	-
Amortization of debt issuance costs	34.6	3.4	0.7	0.7	-
Impairment of property and equipment	6.8	29.9	23.8	1.9	2.5
Sale of Property	1.4	1.0	2.7	3.5	2.7
Inventories	-8.1	42.4	53.2	71.1	-97.0
Other Current Assets	-6.9	10.1	53.8	-1.3	-9.8
Other Assets	-2.0	2.1	2.8	2.5	1.5
Payables/Accrued	-3.5	24.2	1.6	-34.5	-34.6
Liabilities	-6.0	-12.3	21.9	59.6	56.5
Discontinued Operations	-5.4	-15.4	0.0	-21.6	1.4
Cash from Operating Activities	-52.3	36.9	2.7	113.0	40.6

Capital Expenditures	-15.3	-14.7	-28.4	-85.1	-79.3
Purchase Investments	-9.4	-3.0	-22.7	-10.4	-11.3
Sale of Investments	6.1	2.4	25.8	8.3	8.1
Net cash provided by (used in) investing	-	0.0	0.0	225.1	-7.2
Cash from Investing Activities	-18.6	-15.2	-25.3	137.7	-89.6

Payments on Senior Secured Term Loan	-11.3	-	-	-	-
Debt issuance costs	0.0	-25.5	0.0	0.0	-
Proceeds from Senior Secured Term Loan	0.0	150.0	0.0	0.0	-
Credit Payments	-3,514.8	-4,610.6	-5,123.0	-3,531.8	-3,953.1
Credit Proceeds	3,604.8	4,465.1	5,107.2	3,630.8	3,977.6
Stock Options Exer.	0.1	0.0	6.2	2.0	17.8
Excess Tax Benefits on Stock Options Exe	0.0	0.0	0.2	0.1	1.4
Treasury Stock	-	0.0	0.0	-326.7	0.0
Cash from Financing Activities	78.8	-21.0	-9.4	-225.7	43.7

Foreign Exchange Effects	1.0	0.5	-4.3	0.2	0.3
Net Change in Cash	8.9	1.2	-36.4	25.2	-5.0

Net Cash - Beginning Balance	26.2	25.0	61.3	36.2	42.6
Net Cash - Ending Balance	35.1	26.2	25.0	61.3	37.6
Cash Interest Paid	32.1	10.8	11.0	12.9	19.2
Cash Taxes Paid	1.0	30.0	6.4	1.0	13.1

Interim Cash Flows

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Jan-2012	31-Oct-2011	31-Jul-2011	30-Apr-2011	31-Jan-2011
Period Length	6 Months	3 Months	12 Months	9 Months	6 Months
UpdateType/Date	Updated Normal 31-Jan-2012	Updated Normal 31-Oct-2011	Updated Normal 31-Jul-2011	Updated Normal 30-Apr-2011	Updated Normal 31-Jan-2011
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1

Net Income	-3.0	-31.9	-112.3	-79.7	-70.7
Depreciation	19.2	9.9	41.3	31.1	21.3
Non-cash interest	1.8	0.9	34.6	33.7	32.9
Deferred Taxes	-0.1	-0.2	5.3	-0.5	3.9
Loss on disposition of property and equi	1.2	0.4	1.4	0.5	0.2
Impair. Fixed Assets	1.0	-	6.8	3.7	3.7
Stock based compensation	1.5	0.7	2.2	1.8	1.2
Loss from discontinued operations	0.2	0.2	0.3	0.3	1.3
Conversion of paid in kind interest to S	-	-	0.0	-	-
Impair. Goodwill	-	-	0.0	-	-
Gain on warrants	-	-	0.0	-	-
Merchandise inventories	-101.1	-141.8	-8.1	-42.5	-70.5
Other Current Assets	7.4	-3.1	-6.9	4.7	3.6
Other Assets	0.6	-0.1	-2.0	-1.7	-0.7
Deferred revenue	-8.2	-10.4	-	-	-
Payables/Liabilities	59.6	82.8	-3.5	16.1	16.5
Non Current Liabs.	-3.8	-2.5	-6.0	-0.9	2.8
Net cash provided by discontinued operat	-0.7	-0.4	-5.4	-5.1	-2.5
Cash from Operating Activities	-24.3	-95.6	-52.3	-38.7	-57.1

Payments for property and equipment	-10.0	-4.3	-15.3	-8.1	-5.5
Purchase Investments	-4.6	-3.3	-9.4	-7.2	-3.4
Sale of Investments	1.1	0.1	6.1	5.1	2.4
Cash from Investing Activities	-13.4	-7.5	-18.6	-10.3	-6.6

Borrowings under revolving credit agreem	2,263.9	1,040.9	3,604.8	2,740.3	1,992.0
Payments on revolving credit agreement	-2,233.9	-942.4	-3,514.8	-2,670.3	-1,912.0
Payments on senior secured term loan	0.0	0.0	-11.3	-11.3	-11.3
Proceeds from Senior Secured Term Loan	-	-	0.0	-	-
Debt issuance costs	-	-	0.0	-	-
Options	-	-	0.1	-	-
Excess tax benefit on stock options exer	-	-	0.0	-	-
Cash from Financing Activities	30.0	98.5	78.8	58.8	68.8

Foreign Exchange Effects	-0.3	-0.4	1.0	0.8	0.2
Net Change in Cash	-8.0	-5.0	8.9	10.6	5.2

Net Cash - Beginning Balance	35.1	35.1	26.2	26.2	26.2
Net Cash - Ending Balance	27.1	30.1	35.1	36.9	31.4
Cash Interest Paid	-	-	32.1	-	-
Cash Taxes Paid	-	-	1.0	-	-

Business Segments

Financials in: As Reported (mil)

Annual

External Revenue USD (mil)
	31-Jul-11		31-Jul-10		31-Jul-09		31-Jul-08		31-Jul-07
Fine Jewelry	1,490.6	85.5 %	1,378.5	85.3 %	1,535.6	86.3 %	1,876.2	87.8 %	1,876.6	87.2 %
Kiosk	239.2	13.7 %	226.2	14 %	232.8	13.1 %	249.5	11.7 %	262.6	12.2 %
All Other	12.7	0.7 %	11.6	0.7 %	11.3	0.6 %	12.4	0.6 %	13.6	0.6 %
Segment Total	1,742.6	100 %	1,616.3	100 %	1,779.7	100 %	2,138.0	100 %	2,152.8	100 %
Consolidated Total	1,742.6	100 %	1,616.3	100 %	1,779.7	100 %	2,138.0	100 %	2,152.8	100 %
Total Revenue USD (mil)
	31-Jul-11		31-Jul-10		31-Jul-09		31-Jul-08		31-Jul-07
Fine Jewelry	1,490.6	85.5 %	1,378.5	85.3 %	1,535.6	86.3 %	1,876.2	87.8 %	1,876.6	87.2 %
Kiosk	239.2	13.7 %	226.2	14 %	232.8	13.1 %	249.5	11.7 %	262.6	12.2 %
All Other	12.7	0.7 %	11.6	0.7 %	11.3	0.6 %	12.4	0.6 %	13.6	0.6 %
Segment Total	1,742.6	100 %	1,616.3	100 %	1,779.7	100 %	2,138.0	100 %	2,152.8	100 %
Consolidated Total	1,742.6	100 %	1,616.3	100 %	1,779.7	100 %	2,138.0	100 %	2,152.8	100 %

Depreciation USD (mil)
	31-Jul-11		31-Jul-10		31-Jul-09		31-Jul-08		31-Jul-07
Fine Jewelry	28.0	89.3 %	35.6	89.6 %	42.4	89.6 %	42.8	89 %	39.9	87.7 %
Kiosk	3.4	10.7 %	4.1	10.4 %	4.9	10.4 %	5.3	11 %	5.6	12.3 %
All Other	0.0	0 %	0.0	0 %	0.0	0 %	0.0	0 %	0.0	0 %
Segment Total	31.4	100 %	39.7	100 %	47.3	100 %	48.1	100 %	45.6	100 %
Unallocated	10.0	31.7 %	10.3	26 %	11.6	24.6 %	12.1	25.2 %	11.0	24.2 %
Consolidated Total	41.3	131.7 %	50.0	126 %	58.9	124.6 %	60.2	125.2 %	56.6	124.2 %
Operating Income/Loss USD (mil)
	31-Jul-11		31-Jul-10		31-Jul-09		31-Jul-08		31-Jul-07
Fine Jewelry	-16.3	-215.2 %	-84.8	126.7 %	-192.7	104.4 %	18.9	54.9 %	104.4	88.6 %
Kiosk	16.1	211.9 %	13.1	-19.6 %	2.5	-1.3 %	9.9	28.7 %	6.6	5.6 %
All Other	7.8	103.3 %	4.7	-7.1 %	5.7	-3.1 %	5.6	16.4 %	6.8	5.8 %
Segment Total	7.6	100 %	-67.0	100 %	-184.5	100 %	34.5	100 %	117.8	100 %
Unallocated	-35.4	-467.7 %	-48.5	72.4 %	-24.5	13.3 %	-27.3	-79.2 %	-32.9	-28 %
Consolidated Total	-27.9	-367.7 %	-115.4	172.4 %	-209.0	113.3 %	7.2	20.8 %	84.9	72 %

Operating Margin (%)
		31-Jul-11				31-Jul-10			31-Jul-09		31-Jul-08				31-Jul-07
Fine Jewelry		-1.1		-		-6.2		-	-12.5	-	1.0		-		5.6		-
Kiosk		6.7		-		5.8		-	1.1	-	4.0		-		2.5		-
All Other		61.7		-		40.7		-	50.5	-	45.6		-		49.9		-
Segment Total		0.4		-		-4.1		-	-10.4	-	1.6		-		5.5		-
Consolidated Total		-1.6		-		-7.1		-	-11.7	-	0.3		-		3.9		-
Total Assets USD (mil)
	31-Jul-11		31-Jul-10				31-Jul-09			31-Jul-08				31-Jul-07
Fine Jewelry	805.2	86.4 %	820.4		87.3 %		868.2		86.8 %	987.4		87.1 %		1,267.7		89.7 %
Kiosk	86.0	9.2 %	85.6		9.1 %		107.5		10.7 %	118.6		10.5 %		120.7		8.5 %
All Other	40.4	4.3 %	33.6		3.6 %		24.8		2.5 %	27.2		2.4 %		25.4		1.8 %
Segment Total	931.7	100 %	939.6		100 %		1,000.5		100 %	1,133.2		100 %		1,413.8		100 %
Unallocated	258.2	27.7 %	231.7		24.7 %		230.4		23 %	282.1		24.9 %		200.1		14.2 %
Consolidated Total	1,189.9	127.7 %	1,171.3		124.7 %		1,231.0		123 %	1,415.3		124.9 %		1,613.9		114.2 %

Operating Return on Assets (%)
		31-Jul-11		31-Jul-10		31-Jul-09				31-Jul-08				31-Jul-07
Fine Jewelry		-2.0	-	-10.3	-	-22.2		-		1.9		-		8.2		-
Kiosk		18.7	-	15.3	-	2.3		-		8.4		-		5.5		-
All Other		19.4	-	14.1	-	23.0		-		20.7		-		26.7		-
Segment Total		0.8	-	-7.1	-	-18.4		-		3.0		-		8.3		-
Unallocated		-13.7	-	-20.9	-	-10.6		-		-9.7		-		-16.5		-
Consolidated Total		-2.3	-	-9.9	-	-17.0		-		0.5		-		5.3		-
Purchase of Fixed Assets USD (mil)
	31-Jul-11		31-Jul-10		31-Jul-09				31-Jul-08				31-Jul-07
Fine Jewelry	8.8	100 %	9.9	100 %	18.7		97.8 %		59.3		94.8 %		54.6		94.7 %
Kiosk	0.0	0 %	0.0	0 %	0.4		2.2 %		3.3		5.2 %		3.0		5.3 %
All Other	0.0	0 %	0.0	0 %	0.0		0 %		0.0		0 %		0.0		0 %
Segment Total	8.8	100 %	9.9	100 %	19.1		100 %		62.6		100 %		57.7		100 %
Unallocated	6.5	73.7 %	4.7	47.3 %	9.2		48.3 %		22.6		36.1 %		28.8		49.9 %
Consolidated Total	15.3	173.7 %	14.7	147.3 %	28.4		148.3 %		85.1		136.1 %		86.4		149.9 %

Business Segments

Financials in: As Reported (mil)

Interim

External Revenue USD (mil)
	31-Oct-11		31-Jul-11		30-Apr-11		31-Jan-11		31-Oct-10
Fine Jewelry	300.7	85.7 %	322.2	85.4 %	347.1	84.3 %	543.6	86.8 %	277.7	84.9 %
Kiosk	46.7	13.3 %	51.6	13.7 %	61.4	14.9 %	79.7	12.7 %	46.4	14.2 %
All Other	3.6	1 %	3.5	0.9 %	3.3	0.8 %	3.0	0.5 %	2.9	0.9 %
Segment Total	351.0	100 %	377.3	100 %	411.8	100 %	626.4	100 %	327.0	100 %
Consolidated Total	351.0	100 %	377.3	100 %	411.8	100 %	626.4	100 %	327.0	100 %
Total Revenue USD (mil)
	31-Oct-11		31-Jul-11		30-Apr-11		31-Jan-11		31-Oct-10
Fine Jewelry	300.7	85.7 %	322.2	85.4 %	347.1	84.3 %	543.6	86.8 %	277.7	84.9 %
Kiosk	46.7	13.3 %	51.6	13.7 %	61.4	14.9 %	79.7	12.7 %	46.4	14.2 %
All Other	3.6	1 %	3.5	0.9 %	3.3	0.8 %	3.0	0.5 %	2.9	0.9 %
Segment Total	351.0	100 %	377.3	100 %	411.8	100 %	626.4	100 %	327.0	100 %
Consolidated Total	351.0	100 %	377.3	100 %	411.8	100 %	626.4	100 %	327.0	100 %

Depreciation USD (mil)
	31-Oct-11		31-Jul-11		30-Apr-11		31-Jan-11		31-Oct-10
Fine Jewelry	6.2	62.5 %	6.7	64.9 %	6.8	70.1 %	7.2	67.9 %	7.3	68.3 %
Kiosk	0.8	7.8 %	0.8	7.8 %	0.8	8.5 %	0.8	8 %	0.9	8.3 %
All Other	0.0	0 %	0.0	0 %	0.0	0 %	0.0	0 %	0.0	0 %
Unallocated	2.9	29.7 %	2.8	27.4 %	2.1	21.4 %	2.5	24.1 %	2.5	23.4 %
Segment Total	9.9	100 %	10.3	100 %	9.8	100 %	10.6	100 %	10.7	100 %
Consolidated Total	9.9	100 %	10.3	100 %	9.8	100 %	10.6	100 %	10.7	100 %
Operating Income/Loss USD (mil)
	31-Oct-11		31-Jul-11		30-Apr-11		31-Jan-11		31-Oct-10
Fine Jewelry	-17.0	75.8 %	-17.4	72.1 %	-6.3	115.6 %	41.9	96.1 %	-34.6	82.5 %
Kiosk	-2.2	9.7 %	-1.8	7.5 %	7.5	-138.5 %	12.1	27.7 %	-1.7	4.2 %
All Other	2.0	-8.7 %	2.1	-8.6 %	2.0	-36.5 %	2.2	5 %	1.6	-3.8 %
Unallocated	-5.2	23.2 %	-7.0	29 %	-8.7	159.3 %	-12.6	-28.8 %	-7.2	17.2 %
Segment Total	-22.5	100 %	-24.1	100 %	-5.4	100 %	43.6	100 %	-42.0	100 %
Consolidated Total	-22.5	100 %	-24.1	100 %	-5.4	100 %	43.6	100 %	-42.0	100 %

Operating Margin (%)
	31-Oct-11		31-Jul-11		30-Apr-11		31-Jan-11		31-Oct-10
Fine Jewelry	-5.7	-	-5.4	-	-1.8	-	7.7	-	-12.5	-
Kiosk	-4.7	-	-3.5	-	12.3	-	15.1	-	-3.8	-
All Other	55.0	-	59.8	-	59.4	-	71.8	-	56.1	-
Segment Total	-6.4	-	-6.4	-	-1.3	-	7.0	-	-12.8	-
Consolidated Total	-6.4	-	-6.4	-	-1.3	-

DIAMOND INDUSTRY – INDIA

- From time immemorial, India is well known in the world as the birthplace for diamonds. It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8^th Century B.C. India, in fact, remained undisputed leader till 18^th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

- The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

- The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

- Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

- Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

- The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing in the world. Indi ranks third in the world in domestic diamond consumption.

- Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

- Excerpts from Times of India dated 30^th October 2010 is as under –

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

- Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

Standard & Poor’s

United States of America Long-Term Rating Lowered To 'AA+' Due To Political Risks, Rising Debt Burden; Outlook Negative

Publication date: 05-Aug-2011 20:13:14 EST

· We have lowered our long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term rating.

· We have also removed both the short- and long-term ratings from CreditWatch negative.

· The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics.

· More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

· Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon.

· The outlook on the long-term rating is negative. We could lower the long-term rating to 'AA' within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.

TORONTO (Standard & Poor's) Aug. 5, 2011--Standard & Poor's Ratings Services said today that it lowered its long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA'. Standard & Poor's also said that the outlook on the long-term rating is negative. At the same time, Standard & Poor's affirmed its 'A-1+' short-term rating on the U.S. In addition, Standard & Poor's removed both ratings from CreditWatch, where they were placed on July 14, 2011, with negative implications.

The transfer and convertibility (T&C) assessment of the U.S.--our assessment of the likelihood of official interference in the ability of U.S.-based public- and private-sector issuers to secure foreign exchange for

debt service--remains 'AAA'.

We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process. We also believe that the fiscal consolidation plan that Congress and the Administration agreed to this week falls short of the amount that we believe is necessary to stabilize the general government debt burden by the middle of the decade.

Our lowering of the rating was prompted by our view on the rising public debt burden and our perception of greater policymaking uncertainty, consistent with our criteria (see "Sovereign Government Rating Methodology and Assumptions ," June 30, 2011, especially Paragraphs 36-41). Nevertheless, we view the U.S. federal government's other economic, external, and monetary credit attributes, which form the basis for the sovereign rating, as broadly unchanged.

We have taken the ratings off CreditWatch because the Aug. 2 passage of the Budget Control Act Amendment of 2011 has removed any perceived immediate threat of payment default posed by delays to raising the government's debt ceiling. In addition, we believe that the act provides sufficient clarity to allow us to evaluate the likely course of U.S. fiscal policy for the next few years.

The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements,

the containment of which we and most other independent observers regard as key to long-term fiscal sustainability.

Our opinion is that elected officials remain wary of tackling the structural issues required to effectively address the rising U.S. public debt burden in a manner consistent with a 'AAA' rating and with 'AAA' rated sovereign peers (see Sovereign Government Rating Methodology and Assumptions," June 30, 2011, especially Paragraphs 36-41). In our view, the difficulty in framing a consensus on fiscal policy weakens the government's ability to manage public finances and diverts attention from the debate over how to achieve more balanced and dynamic economic growth in an era of fiscal stringency and private-sector deleveraging (ibid). A new political consensus might (or might not) emerge after the 2012 elections, but we believe that by then, the government debt burden will likely be higher, the needed medium-term fiscal adjustment potentially greater, and the inflection point on the U.S. population's demographics and other age-related spending drivers closer at hand (see "Global Aging 2011: In The U.S., Going Gray Will Likely Cost Even More Green, Now," June 21, 2011).

Standard & Poor's takes no position on the mix of spending and revenue measures that Congress and the Administration might conclude is appropriate for putting the U.S.'s finances on a sustainable footing.

The act calls for as much as $2.4 trillion of reductions in expenditure growth over the 10 years through 2021. These cuts will be implemented in two steps: the $917 billion agreed to initially, followed by an additional $1.5 trillion that the newly formed Congressional Joint Select Committee on Deficit Reduction is supposed to recommend by November 2011. The act contains no measures to raise taxes or otherwise enhance revenues, though the committee could recommend them.

The act further provides that if Congress does not enact the committee's recommendations, cuts of $1.2 trillion will be implemented over the same time period. The reductions would mainly affect outlays for civilian discretionary spending, defense, and Medicare. We understand that this fall-back mechanism is designed to encourage Congress to embrace a more balanced mix of expenditure savings, as the committee might recommend.

We note that in a letter to Congress on Aug. 1, 2011, the Congressional Budget Office (CBO) estimated total budgetary savings under the act to be at least $2.1 trillion over the next 10 years relative to its baseline assumptions. In updating our own fiscal projections, with certain modifications outlined below, we have relied on the CBO's latest "Alternate Fiscal Scenario" of June 2011, updated to include the CBO assumptions contained in its Aug. 1 letter to Congress. In general, the CBO's "Alternate Fiscal Scenario" assumes a continuation of recent Congressional action overriding existing law.

We view the act's measures as a step toward fiscal consolidation. However, this is within the framework of a legislative mechanism that leaves open the details of what is finally agreed to until the end of 2011, and Congress and the Administration could modify any agreement in the future. Even assuming that at least $2.1 trillion of the spending reductions the act envisages are implemented, we maintain our view that the U.S. net general government debt burden (all levels of government combined, excluding liquid financial assets) will likely continue to grow. Under our revised base case fiscal scenario--which we consider to be consistent with a 'AA+' long-term rating and a negative outlook--we now project that net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 79% in 2015 and 85% by 2021. Even the projected 2015 ratio of sovereign indebtedness is high in relation to those of peer credits and, as noted, would continue to rise under the act's revised policy settings.

Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act. Key macroeconomic assumptions in the base case scenario include trend real GDP growth of 3% and consumer price inflation near 2% annually over the decade.

Our revised upside scenario--which, other things being equal, we view as consistent with the outlook on the 'AA+' long-term rating being revised to stable--retains these same macroeconomic assumptions. In addition, it incorporates $950 billion of new revenues on the assumption that the 2001 and 2003 tax cuts for high earners lapse from 2013 onwards, as the Administration is advocating. In this scenario, we project that the net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.

Our revised downside scenario--which, other things being equal, we view as being consistent with a possible further downgrade to a 'AA' long-term rating--features less-favorable macroeconomic assumptions, as outlined below and also assumes that the second round of spending cuts (at least $1.2 trillion) that the act calls for does not occur. This scenario also assumes somewhat higher nominal interest rates for U.S. Treasuries. We still believe that the role of the U.S. dollar as the key reserve currency confers a government funding advantage, one that could change only slowly over time, and that Fed policy might lean toward continued loose monetary policy at a time of fiscal tightening. Nonetheless, it is possible that interest rates could rise if investors re-price relative risks. As a result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in 10-year bond yields relative to the base and upside cases from 2013 onwards. In this scenario, we project the net public debt burden would rise from 74% of GDP in 2011 to 90% in 2015 and to 101% by 2021.

Our revised scenarios also take into account the significant negative revisions to historical GDP data that the Bureau of Economic Analysis announced on July 29. From our perspective, the effect of these revisions underscores two related points when evaluating the likely debt trajectory of the U.S. government. First, the revisions show that the recent recession was deeper than previously assumed, so the GDP this year is lower than previously thought in both nominal and real terms. Consequently, the debt burden is slightly higher. Second, the revised data highlight the sub-par path of the current economic recovery when compared with rebounds following previous post-war recessions. We believe the sluggish pace of the current economic recovery could be consistent with the experiences of countries that have had financial crises in which the slow process of debt deleveraging in the private sector leads to a persistent drag on demand. As a result, our downside case scenario assumes relatively modest real trend GDP growth of 2.5% and inflation of near 1.5% annually going forward.

When comparing the U.S. to sovereigns with 'AAA' long-term ratings that we view as relevant peers--Canada, France, Germany, and the U.K.--we also observe, based on our base case scenarios for each, that the trajectory of the U.S.'s net public debt is diverging from the others. Including the U.S., we estimate that these five sovereigns will have net general government debt to GDP ratios this year ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at 74%. By 2015, we project that their net public debt to GDP ratios will range between 30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at 79%. However, in contrast with the U.S., we project that the net public debt burdens of these other sovereigns will begin to decline, either before or by 2015.

Standard & Poor's transfer T&C assessment of the U.S. remains 'AAA'. Our T&C assessment reflects our view of the likelihood of the sovereign restricting other public and private issuers' access to foreign exchange needed to meet debt service. Although in our view the credit standing of the U.S. government has deteriorated modestly, we see little indication that official interference of this kind is entering onto the policy agenda of either Congress or the Administration. Consequently, we continue to view this risk as being highly remote.

The outlook on the long-term rating is negative. As our downside alternate fiscal scenario illustrates, a higher public debt trajectory than we currently assume could lead us to lower the long-term rating again. On the other hand, as our upside scenario highlights, if the recommendations of the Congressional Joint Select Committee on Deficit Reduction--independently or coupled with other initiatives, such as the lapsing of the 2001 and 2003 tax cuts for high earners--lead to fiscal consolidation measures beyond the minimum mandated, and we believe they are likely to slow the deterioration of the government's debt dynamics, the long-term rating could stabilize at 'AA+'.

On Monday, we will issue separate releases concerning affected ratings in the funds, government-related entities, financial institutions, insurance, public finance, and structured finance sectors.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.12
UK Pound	1	Rs.85.14
Euro	1	Rs.68.60

INFORMATION DETAILS

Report Prepared by :

PRL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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