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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest event reported) June 3, 1999
ZALE CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-04129 75-0675400
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
901 W Walnut Hill Lane Irving, Texas 75038-1003
(Address of principal executive offices) (Zip Code)
Registrant's Telephone number, including area code: (972) 580-4000
Not Applicable
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
On June 3, 1999, Zale Corporation (the "Company") announced that it
has purchased substantially all assets and assumed certain liabilities of
Peoples Jewellers Corporation, a privately owned chain of 177 fine jewelry
stores operated throughout Canada.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits.
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99 Press Release issued by the Company on June 3, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
ZALE CORPORATION
Registrant
June 3, 1999 By: /s/ Mark R. Lenz
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Mark R. Lenz
Senior Vice President, Controller
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EXHIBIT INDEX
EXHIBIT
NUMBER DESCRIPTION
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99 Press Release issued by the Company on June 3, 1999.
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EXHIBIT 99
CONTACT: INVESTOR RELATIONS:
Cynthia T. Gordon
Senior Director, Investor Relations
(972) 580-5047
Media:
Ellen Kulik
Director, Corporate Communications
(972) 580-5104
ZALE COMPLETES THE ACQUISITION OF
PEOPLES JEWELLERS OF CANADA
Dallas, Texas, June 3, 1999 --- Zale Corporation (NYSE: ZLC), the
nation's largest specialty retailer of fine jewelry, today, announced that it
has purchased substantially all assets of Peoples Jewellers Corporation, a
privately owned chain of 177 fine jewelry stores operating throughout Canada.
The transaction was made at a purchase price of $115 million Canadian.
In addition, the Company retired or will assume certain operational
liabilities of the business. Zale Corporation will fund the total cost from
existing cash, and no additional borrowing will be required.
"This strategic alignment now brings together the two most highly
recognized fine jewelry retailers in North America," commented Robert J.
DiNicola, Chairman and Chief Executive Officer. "Over the years, Peoples
Jewellers attained its leadership position by offering product of exceptional
quality and value. This tradition will continue and strengthen as we move
forward into the new millennium."
-more-
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"The transaction should not have any dilutive impact on current earnings
and we expect the results to be accretive by fiscal 2001," Mr. DiNicola
continued. "This agreement is a continuation of our commitment to remain
focused on investing in the business and should enhance Peoples' ability to
achieve significant growth as the Canadian arm of Zale Corporation."
This increases Zale Corporation's total number of fine jewelry stores to
1,315 in the United States, Canada and Puerto Rico. Zale owns and operates
Zales Jewelers, Zales Outlet, Zales Direct at WWW.ZALES.COM, Gordon's
Jewelers and Bailey Banks & Biddle Fine Jewelers. Additional information on
Zale Corporation and its operating divisions is available on the Internet at
WWW.ZALECORP.COM.
This release includes certain forward-looking information that is based
upon management's beliefs as well as on assumptions made by and data
currently available to management. This information which has been, or in
the future may be, included in reliance on the "safe harbor" provisions in
the Private Securities Litigation Reform Act of 1995, is subject to a number
of risks and uncertainties, including but not limited to the factors
identified in the Company's 10-K and other documents filed with the
Securities and Exchange Commission. Actual results may differ materially from
those anticipated in such forward-looking statements even if experience of
future changes make it clear that any projected results expressed or implied
therein may not be realized. The Company undertakes no obligation to update
or revise any forward-looking statements to reflect subsequent events or
circumstances.
