Signet's Christmas Same-Store Sales +4%

Jan 8, 2015 7:25 AM By Avi Krawitz

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RAPAPORT... Signet Jewelers reported that same-store sales rose 3.6 percent year on year during the Christmas season, which spanned eight weeks that ended on December 27. Total sales grew 45 percent to $1.85 billion due, primarily, to the company’s acquisition of Zale Corporation earlier in the year.

Growth was driven by strong performance in the U.K., where comparable-store sales jumped 9.7 percent, while total sales rose 6 percent to $215.1 million.

At Signet’s U.S.-based Sterling division, same-store sales increase 2.5 percent and total sales rose 4 percent to $1.12 billion. Sales at Kay Jewelers grew 6 percent to $714.6 million and revenue at Jared rose 5 percent to $336.2 million.

Same-store sales at the Zale division grew 3.5 percent as total sales amounted to $521 million. One year ago, Zale reported that Christmas-season revenue fell 1.9 percent year on year to $556 million, which included the months of November and December. Still, Signet contended that Zale has begun to benefit from merchandising, store team member training and advertising.

Signet noted the success of its own omnichannel strategy during the season, claiming that ecommerce sales jumped 90.9 percent, or 20 percent without Zale. As a percent of total holiday sales, ecommerce increased 160 basis points, the company reported.

Mark Light, Signet's CEO, added that the company resisted deep promotions and protected its profitability, which helped enable the company to maintain its financial guidance. The company expects non-adjusted earnings per share of $4.59 to $4.72, compared to $4.59 a share reported the previous year.

“Our company performed well during the holiday period delivering increased same-store sales across all divisions driven by the continued successful execution of our product, marketing and omnichannel strategies,” said Light. “This is particularly pleasing given the amount of change we have dealt with during the course of the fiscal year."

The company reaffirmed its guidance for the fourth quarter and full year that ends on January 31, 2015.

Tags: Avi Krawitz, diamonds, Jared, Kay Jewelers, Rapaport, Signet, Zale