Zale earned net earnings of $59.3 million in fiscal year 2007, higher from the $53.6 million earnings last year. But revenues were flat at $2.44 billion, compared to the same period last year.

“Fiscal 2007 was a year in which we focused on going back to the basics,” said CEO Betsy Burton. “We tested investments in inventory assortments as well as in payroll and marketing. We will take these learnings, as well as the opportunity to refine our pricing and promotional strategy for this holiday to drive meaningful earnings improvement in our all-important second quarter of fiscal 2008.”

Zale seems to have overcome its $27.4 million net loss of fourth quarter - 2006, as it gained a net earning of $1.5 million for the fourth quarter ended July 31. However revenues slipped by 0.5 percent this quarter to $488 million compared to $491 million of last year. Comparable store sales for the fourth quarter, decreased by 0.5 percent, while decreased by 0.2 percent for the full fiscal 2007.