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 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, 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.”