Exhibit 99.1

Zale Corporation Reports Third Quarter Fiscal 2013 Results

• Net earnings of $5 million, or $0.13 per diluted share, compared to a loss of $5 million in the prior year quarter
• Gross margin of 52.6 percent, up 130 basis points from prior year quarter
• Operating margin of 2.2 percent, up 80 basis points from prior year quarter
• Comparable store sales up 1.4 percent; up 2.6 percent on a constant currency basis and excluding February 29, 2012
• Zales branded stores up 3.0 percent; up 3.9 percent excluding February 29, 2012
• Year-to-date net earnings of $18 million, or $0.45 per diluted share, compared to loss of $8 million, or $0.23 per diluted share, in the prior year

DALLAS--(BUSINESS WIRE)--May 22, 2013--Zale Corporation (NYSE: ZLC) today reported its financial results for the third quarter ended April 30, 2013.

“We delivered strong results in March and April after a slow start to the quarter in February, which resulted in our tenth consecutive quarter of positive comps,” commented Theo Killion, chief executive officer. “These results reflect the recent investments we have made to improve the effectiveness of our guest-facing teams and the appeal of our product offerings.”

Third Quarter Fiscal 2013 Results

Revenues were $443 million compared to $445 million in the third quarter of fiscal 2012.

For the third quarter of fiscal 2013, comparable store sales increased 1.4 percent. This increase follows an 8.0 percent rise in the same period last year. At constant exchange rates, comparable store sales increased 1.7 percent; adjusting for the impact of February 29 in fiscal 2012, comparable store sales increased 2.6 percent.

• Zales branded stores, consisting of Zales Jewelers and Zales Outlet, posted a comparable store sales increase of 3.0 percent, compared to an increase of 12.4 percent in the same period last year. Adjusting for the impact of February 29 in fiscal 2012, comparable store sales increased 3.9 percent.
• U.S. Fine Jewelry brands including our Zales branded stores and our regional brand, Gordon’s Jewelers, posted a comparable store sales increase of 1.8 percent. This increase follows a 10.9 percent rise in the same period last year. Adjusting for the impact of February 29 in fiscal 2012, comparable store sales increased 2.7 percent.
• Canadian Fine Jewelry brands, consisting of Peoples Jewellers and Mappins Jewellers, posted a comparable store sales decline of 0.9 percent. This decline follows a 3.8 percent rise in the same period last year. At constant exchange rates, comparable store sales increased 1.0 percent in the third quarter of fiscal 2013, following an increase of 6.0 percent in the same period last year. Adjusting for the impact of February 29 in fiscal 2012, comparable store sales at constant exchange rates increased 1.8 percent.
• Piercing Pagoda, our Kiosk Jewelry business, posted a comparable store sales increase of 2.1 percent. In the same period last year, comparable store sales declined 1.1 percent. Adjusting for the impact of February 29 in fiscal 2012, comparable store sales increased 2.9 percent.

Gross margin on sales was $233 million, or 52.6 percent, an increase of $5 million compared to $228 million, or 51.3 percent, in the third quarter of fiscal 2012. Selling, general and administrative expenses were $215 million, or 48.5 percent of revenues compared to $213 million, or 47.9 percent of revenues, in the third quarter of fiscal 2012. Operating earnings were $10 million, or 2.2 percent of revenues, compared to operating earnings of $6 million, or 1.4 percent of revenues, in the prior year quarter.

Interest expense was $6 million, compared to $10 million in the third quarter of fiscal 2012. The decrease is the result of the debt refinancing completed in July 2012.

Net earnings were $5 million, or $0.13 per diluted share, compared to a net loss of $5 million, or $0.14 per share, in the third quarter of fiscal 2012.

Inventory at April 30, 2013 stood at $828 million, compared to $779 million in the same period last year.

Year to Date Fiscal 2013 Results

For the nine months ended April 30, 2013, revenues were $1.47 billion, an increase of $11 million compared to the same period last year. Comparable store sales increased 2.7 percent in the first nine months of 2013. This increase follows a 6.5 percent increase in the same period last year. Operating earnings were $38 million, or 2.6 percent of revenues, compared to $27 million, or 1.8 percent of revenues, in the first nine months of fiscal 2012. Net earnings were $18 million, or $0.45 per diluted share, compared to a net loss of $8 million, or $0.23 per diluted share, in the same period last year.

Fiscal Year 2013 Outlook

As previously announced, the company expects to achieve positive net earnings for fiscal year 2013.

Terry Burman Appointed Chairman of the Board

In a separate press release issued this morning, Zale announced the appointment of Terry Burman as a director and as chairman of the board, effective May 31, 2013.

Conference Call

Zale management will host a conference call today at 9:00 a.m. ET to discuss third quarter fiscal 2013 results. The conference call will be broadcast live over the internet and can be accessed, along with a slide presentation, on the Investor Relations section of the company’s web site at www.zalecorp.com. In addition, you can listen to the call live by dialing 877-545-6744 (within the United States) or 706-634-1959 (for international callers), passcode 68950966. The webcast will be archived shortly after the conference call concludes and will be available on the company’s web site. For additional information, contact Investor Relations at 972-580-4391.

About Zale Corporation

Zale Corporation is a leading specialty retailer of diamond and other jewelry products in North America, operating approximately 1,710 retail locations throughout the United States, Canada and Puerto Rico, as well as online. Zale Corporation's brands include Zales Jewelers, Zales Outlet, Gordon's Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Zale also operates webstores at www.zales.com, www.zalesoutlet.com, www.gordonsjewelers.com, www.peoplesjewellers.com and www.pagoda.com. Additional information on Zale Corporation and its brands is available at www.zalecorp.com.

This release and related presentations contain forward-looking statements, including statements regarding future sales, expected operating performance, expenses, margins, profitability, earnings, interest expense, effective tax rate, merchandising and marketing initiatives and industry growth forecasts. Forward-looking statements are not guarantees of future performance and a variety of factors could cause the Company's actual results to differ materially from the results expressed in the forward-looking statements. These factors include, but are not limited to: if the general economy performs poorly, discretionary spending on goods that are, or are perceived to be, “luxuries” may decrease; the concentration of a substantial portion of the Company’s sales in three, relatively brief selling seasons means that the Company’s performance is more susceptible to disruptions; if the Company does not achieve targeted sales growth its operating results and earnings will be adversely impacted; most of the Company’s sales are of products that include diamonds, precious metals and other commodities, and fluctuations in the availability and pricing of commodities could impact the Company’s ability to obtain and produce products at favorable prices; the Company’s sales are dependent upon mall traffic; the Company operates in a highly competitive industry; the financing market remains difficult, and if we are unable to meet the financial commitments in our current financing arrangements it will be difficult to replace or restructure these arrangements; and changes in regulatory requirements may increase the cost or adversely affect the Company’s operations and its ability to provide consumer credit and write credit insurance. For other factors, see the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended July 31, 2012, and subsequent reports on Forms 10-Q and 8-K. The Company disclaims any obligation to update or revise publicly or otherwise any forward-looking statements to reflect subsequent events, new information or future circumstances, except as required by law.

CONTACT:
Zale Corporation
Investor Relations
Roxane Barry, 972-580-4391
Director of Investor Relations