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Signet’s 4Q Revenue +5% on Strong Diamond Fashion Jewelry Sales

Average Transaction Value Rises on Better Product Mix

Mar 28, 2016 2:55 AM   By Rapaport News
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RAPAPORT... Signet Jewelers reported revenue rose 5.1 percent to $2.39 billion in its fourth fiscal quarter on strong diamond fashion jewelry sales in the Sterling Jewelers and Zale divisions.

In the 13 weeks to January 30, the average transaction value at Sterling jumped 6 percent, even as the number of transactions fell 2.3 percent, driven principally by the strength in diamond fashion jewelry. Sales in the Sterling division advanced 6.9 percent to $1.45 billion, according to a statement March 24.

The company saw a similar pattern at Zale, where sales increased 2.9 percent to $655.1 million, with diamond fashion jewelry and bridal driving a 6.2-percent increase in the average transaction price.

The average transaction value at Piercing Pagoda jumped 10 percent on strong sales of 14-karat gold and diamond jewelry.

Same-store sales across the company grew 4.9 percent, while total sales on a constant currency basis advanced 6.4 percent. Profit grew 19 percent to $271.9 million.

The retailer’s strong results were also driven by a 9.1-percent increase in sales in the Kay brand to $940.8 million in the fourth quarter. In the fiscal year as a whole the group opened 42 new Kay stores or a net of 35.

In the full fiscal year that ended January 30, total sales jumped 14 percent to $6.55 billion and profit surged 23 percent to $467.9 million.

The company guided to a 3-to-4-percent increase in same-store sales in the first quarter that ends April 30 and growth of 3 to 4.5 percent in the fiscal year to January 2017.
Tags: Bridal, diamond jewelry, Fashion jewelry, Rapaport News, sales, Signet, Signet Jewelers, sterling, Sterling Jewelers, Zale, zales
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