Advanced Search

Signet's 2Q Profit +7% to $71M

Same-Store Sales Rise for All Brands

Aug 23, 2012 8:14 AM   By Jeff Miller
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share

RAPAPORT... Signet Jewelers reported that sales rose 7 percent year on year to $853.9 million for the second quarter that ended on July 28. Same-store sales climbed 7.1 percent, cost of sales increased 7.9 percent to $542.7 million and profit improved 6.6 percent to $70.7 million.

U.S. division sales rose 9.2 percent to $701.9 million and same-store sales were up 8.2 percent, while U.K. division sales improved 1.4 percent at a constant exchange-rate and comparable-store sales rose 2.1 percent. Same-store sales increased at all of the group's brand stores, which include Kay, Jared, H.Samuel and Ernest Jones.

In the second quarter, gross margin fell to 36.4 percent from  37 percent one year ago. Accounts receivable rose 13.8 percent to $1.03 billion, reflecting both higher sales and  greater participation of in-house customer financing. Inventory rose 9.1 percent year on year to $1.3 billion, primarily the result of higher diamond and gold costs.

Mike Barnes, Signet's chief executive, said, ''We delivered strong second quarter results driven by a 12.5 percent increase in same-store sales at Kay and positive same-store sales in the U.K. This combined with expansion in operating margin drove a double digit increase in earnings per share.''

Signet anticipates same-store sales growth in the low to mid single-digit range for the third quarter. The full fiscal year includes one extra week for Signet, which is expected to increase sales by approximately $50 million; however, this will have a negative impact on the same-store sales calculation for the fourth quarter. This additional week is also expected to result in an operating loss of $2 million to $4 million, reflecting advertising expenses ahead of Valentine's Day next year.

Tags: Jeff Miller, jewellers, results, Signet
Similar Articles
Industry Stock Ticker Stock ImageRapaport Diamond Industry Stock Tracker
Apr 26, 2018
Shares in India’s PC Jeweller (-22%) slumped this past week, prompting the company to reassure investors of its
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2018 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.