Zale Says SEC Is Examining Its Accounting

DALLAS (AP) _ Jewelry retailer Zale Corp. said Monday the Securities and Exchange Commission has started a probe into its accounting, executive pay and other matters. <br/><br/>Shares of Zale fell $2.14,

Monday, April 10th 2006, 9:53 am

By: News On 6

DALLAS (AP) _ Jewelry retailer Zale Corp. said Monday the Securities and Exchange Commission has started a probe into its accounting, executive pay and other matters.

Shares of Zale fell $2.14, or 7.7 percent, to $25.66 in early trading on the New York Stock Exchange after the news.

The SEC is looking into Zale's accounting for extended service agreements, leases, and accrued payroll as well as other matters, Zale said in a statement.

The SEC has subpoenaed materials related to the accounting issues as well as executive pay and severance, earnings forecasts, stock trading, and the timing of certain vendor payments.

Dallas-based Zale said it is cooperating with the SEC's investigation while conducting its own review, and believes its accounting ``complied with generally accepted accounting principles.''