Zale Says 4th-Quarter Profit to Miss Forecast

Zale Corp.’s fiscal fourth-quarter profit will be less than forecast because of slowing sales at the largest North American jewelry retailer. Shares fell 15%, the biggest drop in at least two decades.

Profit will be 14 cents to 17 cents a share, excluding costs, in the quarter ending July 31, Zale said. The average estimate of analysts surveyed was 24 cents. Sales at stores open at least a year will rise 1% to 2%, the jewelry seller said.

Slowing sales also led the largest U.S. luxury jewelry retailer, Tiffany & Co., to reduce its quarterly forecast this week.

Shares of Irving, Texas-based Zale fell $5.29 to $29.50 on the NYSE.