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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenues	$ 656,449	$ 670,752	$ 1,019,063	$ 1,028,220
Cost of sales	308,830	331,101	477,656	498,234
Gross margin	347,619	339,651	541,407	529,986
Selling, general and administrative	280,148	279,064	488,306	485,529
Depreciation and amortization	7,461	8,388	15,122	17,034
Other charges (gains)	488	926	488	(847)
Operating earnings	59,522	51,273	37,491	28,270
Interest expense	6,096	6,088	11,706	11,930
Earnings before income taxes	53,426	45,185	25,785	16,340
Income tax expense	2,640	3,977	2,305	3,396
Net earnings	$ 50,786	$ 41,208	$ 23,480	$ 12,944
Basic net earnings per common share: (in dollars per share)	$ 1.54	$ 1.27	$ 0.72	$ 0.40
Diluted net earnings per common share: (in dollars per share)	$ 1.13	$ 1.02	$ 0.52	$ 0.32
Weighted average number of common shares outstanding:
Basic (in shares)	32,919	32,426	32,827	32,362
Diluted (in shares)	45,022	40,305	44,837	40,470

The aggregate costs related to goods produced and sold and services rendered by an entity during the reporting period. This excludes costs incurred during the reporting period related to financial services rendered and other revenue generating activities.

ZALE CORP 10-Q