Signet Sales Up 1.7%, Same Store Sales Up 4.5 Led by U.S. Performance

Signet Jewelers, the world's largest specialty retail jeweler, reported Thursday that total sales rose by 1.7 percent to $722.8 million and same-store sales rose 4.5 percent in second quarter, ended August 1. Income before taxes for the Bermuda-based jewelry retailer rose 48.8 percent to $57.3 million. Net income was $40.7 million, an increase of 47.5 percent.

“We are pleased with our performance in the second quarter,” Terry Burman, said Signet chief executive of the company which operates jewelry retail stores in the U.S. and U.K “The outlook for the rest of Fiscal 2011 is uncertain. However, we will continue to invest in the business, increase advertising during the holiday season and expand further the availability of differentiated merchandise, in an effort to continue to gain profitable market share."

Sales in the U.S. (which accounted for 80.4 of total group sales for the period) rose 5.1 percent to $580.8 million and operating income rose 26 percent to $63.3 million. Same-store sales rose 5.9 percent. Average unit selling price across all store brands rose 4.7 percent to $407. Kay jewelers reported sales of $325.4 million with same-store sales increasing by 2.6 percent. Jared reported sales of $190.7 million and same-store sales jumped 14 percent.

Sales in the U.K. (which accounted for 19.6 percent of total group sales for the period) fell 2 percent in constant exchange rates and same-store sales fell 0.5 percent. Operating income however rose to $4.7 million compared with only $1 million one year ago. Average unit selling prices increased 12 percent. A stronger dollar, record gold prices and higher tax rates drove gross margin lower by 30 basis points in second quarter. Signet observed no real change in economic activity during the second quarter compared with the first quarter in the U.K.

“The consumer environment in both the US and the UK remained challenging in the year to date, however the business continued to utilize its competitive advantages to improve sales, enhance margins, and strengthen its balance sheet,” the company said in its report.

Signet operates 1,893 stores, including 1,345 stores in the U.S., where it trades as Kay Jewelers, Jared The Galleria Of Jewelry and under a number of regional names. Signet also operated 548 stores in the UK division, where it trades as H.Samuel, Ernest Jones and Leslie Davis.

Signet Q2 Same Store Sales Up 10%, Total Sales Up 11%

Kay Jewelers brought in $367.5 million in the second quarter for its parent company, Signet Jewelers.

Signet Jewelers Ltd., the world’s largest specialty retail jeweler, reported that year-over-year same store sales increased 9.9 percent and total sales rose 10.8 percent to $797.6 million for the second quarter of 2011. Total income before taxes jumped 82.4 percent to $99.8 million for the period ended July 30. Net income for the period increased 71.3 percent to $66.3 million.

The Hamilton, Bermuda-based company owns some of the largest jewelry retail chains in the U.S. and the U.K. that total 1,850 stores. Its shares trade on the New York Stock Exchange.

“I am pleased to announce record results for the second quarter reflecting the ongoing success of our strategies to present differentiated and sought-after product ranges, develop compelling branded offerings, provide a superior in-store customer experience and execute inspiring marketing campaigns,” said Mike Barnes, Signet CEO. “This powerful combination drove a … 430 basis point increase in operating margin and a 68.9 percent rise in diluted earnings per share as compared to the second quarter last year. During the quarter, our branded jewelry initiatives drove strong US same store sales performance and assisted our UK division’s sales to outperform a challenging retail marketplace. I would like to thank all team members at Signet who contributed to this great performance.”

In the U.S., which accounted for 80.6 percent of group sales in the second quarter, sales rose 11.3 percent to $643 million. Same store sales for the period increased 12.2 percent. In the U.S., Signet owns 1,314 stores that include Kay Jewelers, Jared The Galleria Of Jewelry, and a number of regional names. Kay Jewelers led the way with $367.5 million in the quarter. It’s average selling price per unit was $391. The more high-end Jared chain reported total sales of $213.8 million, with an average selling price per unit of $834.

In the U.K., which accounted for 19.4 percent of total sales for the second quarter, sales were basically flat, rising 0.1 percent to $154.6 million at constant exchange rates. At reported rates, sales increased 8.8 percent. Same store sales rose 1.4 percent for the period. In the U.K., Signet owns 536 stores, including the H.Samuel, Ernest Jones and Leslie Davis jewelry retail chains. H.Samuel reported $81.4 million for the period and an average unit selling price of 62 pounds ($101.50) sterling. Ernest Jones had sales of $73.2 million and an average unit selling price of 276 pounds ($451.60).

In a conference call Thursday morning, Barnes said website sales increased 50 percent and that it will be upgrading its websites prior to the holiday season. "That’s where the world is going now and we will focus on investing in it in both in the U.K. and the U.S. markets."

Free cash flow for the period was $153.8 million (26 weeks ended July 31, 2010: $240.2 million); non-GAAP measure, see Note 3. Free cash flow for Fiscal 2012 is estimated at $175 million to $225 million, an increase from the previous estimate of $150 million to $200 million. At July 30, 2011, Signet had no long term debt (July 31, 2010: $229.1 million) and cash and cash equivalents of $440.2 million (July 31, 2010: $485.4 million).

In the second quarter, Signet’s gross margin increased 24.3 percent to $294.8 million. Signet’s gross margin rate increased by 400 basis points to 37 percent, compared with a gross margin rate of 33 percent for the second quarter of 2010. The U.S. division’s gross merchandise margin was up 110 basis points, benefiting from selective price increases and reduced discounting, which more than offset higher commodity costs. The U.K. division’s gross merchandise margin declined by 40 basis points, with the impact of an increase in the cost of commodities and a higher value added tax rate, being largely offset by a number of price increases.

Neil Lane Creates Bridal Collection for Kay Jewelers

Jewelry designer Neil Lane and Kay Jewelers will launch the Neil Lane Bridal, a line of 36 vintage-inspired engagement and wedding rings. Each ring is designed by Neil Lane and hand crafted, assembled, and finished by skilled artisans, with diamonds that were hand selected by Kay.

The rings are grouped in the following themes: Energy, Timeless, Essence, and Harmony. Prices range from $2,599 - $7,799. The collection is available at select U.S. Kay Jewelers stores and online at kay.com.

Neil Lane’s work is seen on film, television and music icons at red carpet events and celebrity weddings on some of the world’s most influential women.

Kay Jewelers, the number one jewelry store in America, is located in malls and off-mall shopping centers across the country. Kay Jewelers’ parent company, Akron, Ohio-based Sterling Jewelers Inc., operates 1,431 stores in all 50 states and employs more than 21,000 team members. Sterling Jewelers Inc. is the U.S. division of Signet Jewelers Ltd., making it part of the largest specialty jewelry retailer in the world.

Signet Q1 Same Store Sales, Total Sales Up 10%

Signet Jewelers, the world’s largest specialty retail jeweler, reported strong sales results for the first quarter of FY 2012 led by a 10.2 percent increase in same store sales, compared to a rise of 5.8 percent for the first quarter of the prior year. Total sales for the period, ended April 30, also rose 10.2 percent to $887.3 million.

Operating income for the Bermuda-based company, which operates jewelry retail chains in the U.S. and U.K., improved by 310 basis points to 13.4 percent. As a result, income before income taxes and diluted earnings per share rose to $117.8 million, compared with $74.1 million during the prior fiscal year.  

“We are very pleased with our strong start to the year, leading to record results for the first quarter. Our performance was led by our U.S. division, with the U.K. division continuing to operate well in a challenging economy,” said Mike Barnes, Signet Jewellers CEO  “The strong sales momentum has continued into the start of the second quarter ... We remain well positioned to continue to increase sales productivity and achieve our financial objectives for this year.”

In the U.S., which accounted for 83.2 percent of total company sales for the period, sales increased 11.4 percent to $738 million. Same store sales rose 12.5 percent for the period. Signet operates 1,314 in the U.S., under the brands Kay Jewelers, Jared The Galleria Of Jewelry and a number of regional brands.

At Kay Jewelers, the company’s largest retail chain operation and the largest retail jewelry operation in the U.S., sales rose 13.4 percent to $435.4 million with same store sales up 13.9 percent. The average selling price was $360, a year-over increase of 11.8 percent. At Jared, total sales rose 12.7 percent to $227.8 million. Same store sales increased 11.8 percent for the period. The average selling price per unit for the period was $798, a 7.7 percent increase compared to the prior year.

In the U.K., which accounted for 16.8 percent of total company sales for the period, sales rose 4.5 percent to $149.3 million, mostly due to the strength of the British pound over the U.S. dollar. When the exchange rates were removed sales fell for the period by 1.3 percent. Same store sales rose 0.2 percent. Signet operates 538 stores in the U.K. under the brands H.Samuel, Ernest Jones and Leslie Davis.

 
On May 24, Signet, which trades on the New York Stock Exchange, entered into a $400 million senior unsecured multi-currency, five-year revolving credit facility agreement that will be used for working capital requirements and general corporate purposes. The new loan replaces an existing $300 million credit account entered in June 2008, which was due to expire in June 2013.

Signet operates approximately 1,852 specialty retail jewelry stores.

Signet 2011 Sales Up 5%

Mike Barnes, Signet CEO

Signet Jewelers Ltd., the world’s largest specialty retail jeweler, said Wednesday that same store sales rose 6.7 percent for fiscal 2011, ended Jan. 29. Total sales for the year rose 5 percent to $3.4 billion.

Income before taxes for the year increased 30.3 percent to $300.4 million. Adjusted income before taxes rose 51 percent to $347.9 million.

The Bermuda-based, New York Stock Exchange-listed company operates approximately 1,857 specialty retail jewelry stores in the U.S. and the U.K. Sales for its U.S. business (which accounts for nearly 80 percent of total revenues) increased 8 percent for the year to $2.74 billion, with same-store sales up nearly 9 percent.

In the U.K., it was a different story as sales fell 5.5 percent to less than $693.2 million, the company said. Same store sales fell 1.4 percent for the year.

“Fiscal 2011 was an outstanding year for Signet, said Mike Barnes, Signet CEO. “We believe that Signet is well positioned to gain profitable market share and improve operating margins as a result of our competitive strengths in the bridal category, the further development of brands that differentiate us from our competitors, our long term focus on best in class customer service, and traffic generating marketing campaigns that leverage our leading share of voice.”

This was Barnes first earnings report statement as Signet CEO. The former executive with accessories company Fossil took the helm at Signet at the end of January, following the retirement of Terry Burman, who headed the company for 10 years.

Fiscal 2012 is off to a strong start, particularly in the U.S., the company said. Same store sales in the first seven weeks are up by 8.5 percent, compared with the comparable period last year. The U.S. division increased by 11.4 percent and the U.K. division was down by 4.6 percent.

Signet operates approximately 1,317 stores in the U.S., where its store brands include Kay Jewelers, Jared The Galleria Of Jewelry and a number of regional names. Signet also operated 540 stores in the U.K., where its store brands are H.Samuel, Ernest Jones and Leslie Davis.

Signet, Zale Post Strong Holiday Sales Gains

Kay, the largest specialty retail jewelry brand in the US based on sales, is owned by Signet Jewelers.

The two largest jewelry chains in the U.S. both posted year-over-year gains for the nine-week holiday season, ended January 1.

Signet Jewelers Ltd., the world’s largest specialty retail jeweler, said Tuesday that U.S. sales increased by 11.7 percent for the period. The Bermuda-based company also has jewelry retail chains in the U.K. and that part of the business posted a 4.2 percent decline for the period, due to the negative impact of adverse winter weather (originally reported as a 4.2 percent increase, we regret the error).

Total holiday sales increased 8.1 percent with same store sales for the period up by 11.7 percent, following a 7.5 percent rise during the 2009 holiday season.

Signet operates 1,874 specialty retail jewelry stores including 1,330 stores in the U.S., where it owns stores under the Kay Jewelers, Jared The Galleria Of Jewelry and a number of regional names. The company also operated 544 stores in the UK, where it operates as H.Samuel, Ernest Jones and Leslie Davis.

Meanwhile, Zale Corp. said Tuesday that same store sales increased 8.5 percent for the holiday period of November and December 2010. At constant exchange rates (which excludes the effect of translating Canadian currency denominated sales into U.S. dollars), same store sales increased 7.6 period for the holiday selling period. Total revenues for the two-month period increased 8 percent to $533.1.

U.S. Fine Jewelry brands (which operate as Zales Jewelers, Zales Outlet and Gordon's Jewelers) had an increase in same store sales of 7.5 percent.

Canadian Fine Jewelry brands (consisting of Peoples Jewellers and Mappins Jewellers) had an increase in same store sales of 15.6 percent (up 10.2 percent at constant exchange rates).

Kiosk jewelry same store sales from its Piercing Pagoda business increased 4.2 percent.

“The Holiday sales results represent progress as we continue to stabilize the business and return to profitability,” said Theo Killion, Zale Corp. CEO. “The investments we've made in our field teams, the clarity of our marketing message and our back to basics merchandising strategy were validated by our guests during the most critical selling period of the year.”

Signet Jewelers Becomes Sponsor’s D.E.F. ‘Diamonds in the Sky’ Gala

Signet Jewelers Ltd., the largest specialty jewelry retailer in the US and UK, has become the first “Premier Presenting Sponsor” of the “Diamonds in the Sky” Gala Event, hosted by the Diamond Empowerment Fund (D.E.F).

The event will be held on May 29th at the Four Seasons Hotel in Las Vegas. D.E.F. is a global non-profit organization that raises money to fund education initiatives in diamond-producing nations. It was co-founded by business magnate Russell Simmons and leaders in the diamond industry in 2007. Signet Jewelers is best-known in the US as the owners of Kay Jewelers and Jared The Galleria Of Jewelry retail jewelry chains.

The event will bring a mix of the international diamond jewelry industry representatives, government officials from diamond producing nations, dignitaries and celebrities from fashion and entertainment. The proceeds will benefit D.E.F’s ‘Diamonds Do Good’ mission of providing higher education scholarships for youth from diamond producing countries. 

Presentation of the Diamond Empowerment Fund 2014 Global Diamond Industry Achievement Award will be made to Botswana President Ian Khama in recognition of their global leadership and contributions to democracy, sustainable economic development and the growth and expansion of the international diamond industry. 

“We are thrilled to congratulate Signet as the first Premier Presenting Sponsor for D.E.F on this occasion,” said Phyllis Bergman, president of D.E.F’s board of directors. “We encourage other industry leaders to consider sponsorship opportunities of this important event which celebrates the good diamonds do.” 

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