Exhibit 99.1

Zale Announces Comparable Store Sales Increase of 7.2 Percent
and Raises Earnings Expectations for Its Third Quarter

    DALLAS--(BUSINESS WIRE)--May 6, 2004--Zale Corporation (NYSE:ZLC),
North America's largest specialty retailer of fine jewelry, today
reported that for the third quarter ended April 30, 2004, comparable
store sales increased 7.2%. Total revenues for the period were $483
million compared to last year's third quarter revenues of $449
million, an increase of 7.6%.
    For the fiscal year-to-date, total revenues increased 4.5% to
$1.849 billion, compared to $1.770 billion for the same period last
year. On a year-to-date basis, comparable store sales increased 4.4%.
    "Our positive momentum continued across all brands during the
third quarter," commented Mary L. Forte, President and Chief Executive
Officer. "We delivered a strong Valentine's Day period and maintained
that performance during the remainder of the quarter driven by
impactful marketing and great product."
    Ms. Forte continued, "Several of our major initiatives are
beginning to have a positive impact on our business. Direct product
sourcing is providing our customers quality merchandise while
improving both sales and margins. Our marketing strategy is more
targeted and productive as we further build our database marketing
capabilities. Additionally, our emphasis on training and development,
technology in our stores and our off-mall real estate strategy is
enhancing the customer experience in our stores."
    The Company further commented that due to its strong comparable
store sales increase, it now expects diluted earnings per share for
the third quarter ended April 30, 2004 to range between $0.41 and
$0.43.
    Zale Corporation will announce its third quarter fiscal 2004
earnings results on May 18, 2004. A conference call will be held at
9:00 a.m. Eastern Time. Parties interested in participating should
dial 706-643-7467 five minutes prior to the scheduled start time. A
webcast of the call, as well as a replay, will be available on the
Company's Web site at www.zalecorp.com. For additional information,
contact Investor Relations.
    Zale Corporation is North America's largest specialty retailer of
fine jewelry operating approximately 2,220 retail locations throughout
the United States, Canada and Puerto Rico, as well as online. Zale
Corporation's brands include Zales Jewelers, Zales Outlet, Zale Direct
at www.zales.com, Gordon's Jewelers, Bailey Banks & Biddle Fine
Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda.
Additional information on Zale Corporation and its brands is available
on the Internet at www.zalecorp.com.

    This release contains forward-looking statements, including
statements regarding the Company's objectives and expectations
regarding its third quarter earnings per share, as well as its
merchandising and marketing strategies and business execution, which
are based upon management's beliefs and assumptions made by and data
currently available to management. These 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
anticipated or expected results expressed in these forward-looking
statements. The following list, which is not intended to be an
all-encompassing list of risks and uncertainties affecting the
Company, summarizes several factors that could cause the Company's
actual results to differ materially from those anticipated or expected
in these forward-looking statements: that low or negative growth in
the economy or in the financial markets will occur and reduce
discretionary spending on goods that are, or are perceived to be,
"luxuries"; that levels of mall traffic may decline as a result of
economic or other factors; that warehousing and distribution
productivity and capacity can be further improved to support the
Company's distribution requirements; that strong competitive responses
may impact the Company's efforts to leverage its brand power with its
marketing, merchandising and promotional efforts; that seasonality of
the retail jewelry business or downturns in consumer spending during
the fourth calendar quarter may adversely affect the Company's
results; that the Company may not be able to continue to manage its
inventory and product supply effectively to respond to consumer
demand; that fluctuations in diamond prices may negatively affect the
business; that legal or governmental proceedings may have an adverse
effect on the financial results or reputation of the Company; that key
personnel who have been hired or retained by the Company may depart;
that any disruption in the Company's private label credit card
arrangement may adversely affect the Company's ability to provide
consumer credit; or that changes in government or regulatory
requirements may increase the cost of or adversely affect the
Company's operations. 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.

    CONTACT: Zale Corporation, Dallas
             David H. Sternblitz, 972-580-5047
             Senior Director, Investor and Public Relations