They already hit the market and were sold in the fourth quarter last year. This explains the merciless pounding the shares took on essentially an unimportant October quarter release (only represented 18% of annual sales).
In my view, this is a good thing as Breeden's share position was a big overhang. Everyone knew he wanted to get out regardless of price or valuation and now that overhang is gone. If you're an institutional investor looking to accumulate, you don't have to worry now that the largest holder is going to stomp down on you on any uptick.
He did NOT want to get out "regardless of price or valuation." He indicated in the Barron's interview that it was probably worth 2-3x the $2.60 or so it was trading at, at that time, and that he would get out at more reasonable prices. I'm sure when the stock ran up, several months ago, that was his basis to get out. (That, of course, doesn't mean the favorable turnaround for Zale will not continued...but I just wanted to point out that you mischaracterized Breeden's attitude toward the stock, when he owned it.)
What's really interesting to me is that Calpers, I believe the nation's largest pension fund and generally savvy investors, has accumulated a 5.2mm share position based on its latest filing. That basically offsets all of Breeden's disposition.
Will be interesting to see if Calpers decides to push for some changes here including asset dispositions (ie. the Canadian operations and/or Pagoda) or an outright sale to SIG. At the very least, this is a big, stable shareholder, which is a positive in my view.