Signet Holiday Same Store Sales Up 7.8%

Kay Jewelers is operated by Signet Jewelers.

Signet Jewelers Ltd. said Tuesday that same-store sales for the nine-week holiday season grew by 7.8 percent, year-over-year.

The Bermuda-based company bills itself as the largest specialty retail jeweler in the U.S. and the U.K.,

In the U.S., which accounts for about 80 percent of total group sales, same-store sales increased 9.2 percent for the holiday period. The company operates Kay Jewelers, Jared The Galleria Of Jewelry and a number of regional brands.

In the U.K., which accounts for about 20 percent of total group sales, same-store sales rose by 1.8 percent for the period. Last season, same-store fell in the U.K. The company operates H.Samuel, Ernest Jones, and Leslie Davis retail chains.

Internet sales rose by 24 percent for the period, the company said during a conference call.

Based on the results, the company, which operates approximately 1,860 retail jewelry stores in the U.S. and U.K., now expects its income in fiscal 2012 to increase from 64 to 67 percent to $494 to $501 million.

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Signet Annual Sales Up 9%

Kay Jewelers, owned by Signet Jewelers

Signet Jewelers Ltd., the largest specialty retail jeweler in the U.S. and the U.K., reported that for its 2012 fiscal year, same store sales increased 9 percent, compared to an increase of 6.7 percent in fiscal 2011. Total sales increased 9.1 percent for the year to nearly $3.75 billion, compared to an increase 5 percent increase in fiscal 2011. E-commerce sales rose 36.5 percent for the period ended January 28 to $92.3 million.

Income before income taxes for fiscal 2012 increased 67.1 percent to $502.1 million. Diluted earnings per share rose 60.8 percent to $3.73. The Signet board declared an increased quarterly dividend of $0.12 per share, up 20 percent.

Sales in the U.S., which accounts for 81 percent of total group sales, increased 10.6 percent to $3.03 billion. Sales n the U.K., which accounts for 19 percent of total group sales, increased 3.2 percent to $715,100 million.

Same store sales in the U.S. rose 11.1 percent for the year and rose a 0.9 percent in the U.K. for the same period.

Signet operates approximately 1,853 specialty retail jewelry stores, including 1,318 stores in the U.S., under the store brands Kay Jewelers, Jared The Galleria Of Jewelry and a number of regional names. The company operates approximately 535 stores in the U.K., under the store brands H.Samuel, Ernest Jones and Leslie Davis.

“Fiscal 2012 was another outstanding year for Signet, said Mike Barnes, Signet CEO. “The increased quarterly dividend of $0.12 per share demonstrates the confidence the Board has in the strength of our business model and our ability to generate positive cash flow, while continuing to invest in, and support, our long term growth initiatives. We are pleased with our sales for Valentine’s Day and believe that Signet is well positioned for Fiscal 2013.”

There was some softness in the fourth quarter for the Bermuda-based company, when compared to the strong growth in the prior three quarters. Total sales increased 6.6 percent to $1.35 billion, with U.S. stores accounting for $1.09 billion in sales and the U.K. representing $263,700. Same store sales increased 6.9 percent for the period ended January 28 (U.S. 8.3 percent; U.K. 1.7 percent).

Income before income taxes increased nearly 52 percent for the quarter to $242.4 million and diluted earnings per share rose nearly 48 percent to $1.79.

Signet said it repurchased $11.8 million of its common shares in the fourth quarter of Fiscal 2012. A total of $288.2 million remained available for future repurchases under the program.

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Signet Jewelers Sales Up 1.4%; Comps Up 1.2%; Calendar Shift Affects Sales

Signet Jewelers Ltd., the largest specialty retail jeweler in the U.S. and U.K., said Thursday that sales for the first quarter increased 1.4 percent to $900 million. Same store sales for the period, ended April 28, increased 1.2 percent. The company said a calendar shift due to a late Mother’s Day adversely impacted sales by an estimated $32 million or 370 basis points.

The Bermuda-based company reported that income before taxes rose 9.1 percent to $128.5 million and diluted earnings per share increased 10.3 percent to $0.96.

“We anticipated the impact of the Mother’s Day promotional calendar shift and managed our business accordingly,” said Mike Barnes, Signet CEO. “In the second quarter to date, which benefited from the calendar shift, our same store sales, including Mother’s Day, were up strong double-digits.”

The retailer said it provided guidance in the second quarter “due to the complexity of the calendar shift.” It expects same store sales in the second quarter to high single digit range and fully diluted earnings per share are expected to range from $0.78 - $0.84 based on an estimated 84 million weighted average shares outstanding.

In the company’s U.S. division, (which generally accounts for about 80 percent of the company’s total sales) sales increased 1.8 percent to $751.5 million. Same store sales were up 1.2 percent and were impacted by 440 basis points due to the calendar shift. Signet’s brands in the U.S. include Kay and Jared jewelry stores and several regional brands.

In the UK division, sales declined 0.8 percent to $148.5 million. Same store sales were up 1.2 percent (13 weeks ended April 30, 2011: 0.2%). Signet’s brands in the U.K. include H.Samuel and Ernest Jones.

Other financial highlights for the first quarter include:

* The gross margin was $353.7 million, representing 39.3 percent of sales.

* Gross margin in the U.S. increased $5.8 million compared to the first quarter of the prior year, driven by a favorable gross merchandise margin movement of 40 basis points, leverage on store occupancy expenses and increased income from credit related fees, partially offset by an impact of $4.7 million on the U.S. net bad debt expense, due to a change in the number of credit billing cycles included in the quarter.

* Gross margin in the UK was $1.8 million lower than that of the first quarter of the prior year, primarily as a result of an unfavorable foreign currency impact and a decline in gross merchandise margin of 170 basis points attributed to the level of promotional activity and merchandise mix, which were partially offset by lower store occupancy and store operating expenses.

* Selling, general and administrative expenses were $264.5 million, or 29.4 percent of sales.

* Other operating income, net, increased to $40.2 million, or 4.5 percent of sales.

* Net operating income was $129.4 million, up $10.7 million or 9 percent.

* In the US division, net operating income was $137.7 million, up $11.5 million or 9.1 percent.

* In the UK division, net operating loss was $3 million, up $2.8 million.

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Signet Jewelers Holiday Sales Up 7.1%, Same-Store Sales Up 3.3%

Kay Jewelers, one of the U.S. brands
owned by Signet.

Signet Jewelers Ltd., the largest specialty retail jeweler in the U.S. and U.K., said Tuesday that sales for the November-December holiday period rose 7.1 percent to $1.23 billion. Same store sales were up 3.3 percent for the nine-week period.

Strong sales in the U.S. overcame a decline in sales for the company’s U.K. stores. Consolidated e-commerce sales increased by 39 percent, comprised of a 49 percent increase in the U.S. and an 8 percent increase in the U.K. Holiday sales for 2012 did not quite reach the level of growth that the jeweler saw in 2011, which was 7.5 percent.

“We saw particularly strong performance in the weeks and days leading up to Christmas,” said Mike Barnes, Signet CEO. “Business trends continue to be encouraging in the U.S. and have improved in the U.K. after the holiday season.”

The Bermuda-based jewelry retailer owns and operates Kay Jewelers; Jared, the Galleria of Jewelry; and a number of regional brands in the U.S. and H.Samuel and Ernest Jones jewelers in the U.K.

The company’s U.S. division saw a year-over-year sales increase of 9.9 percent to just over $1 billion, compared to an increase of 9.2 percent in the comparable nine weeks. Same store sales for the period increased 4.7 percent led by both Kay and Jared, compared to an increase of 9.2 percent in the comparable nine weeks. The total sales figure for 2012 includes $37 million from the Chicago-based Ultra Stores retail chain, which Signet acquired in October.
 
“In the U.S. we experienced broad based strength across our merchandise offerings led by our initiatives in bridal, branded and exclusive merchandise, colored diamonds, fashion jewelry and watches,” Barnes said.

Holiday sales in the company’s U.K. division fell by 5 percent to $203.4 million, compared to an increase of 0.9 percent in the comparable nine weeks. Same store sales in the U.K. were down 2.6 percent compared to an increase of 1.8 percent in the comparable nine weeks.

“In the UK watches and branded jewelry were the strongest performers,” Barnes said.

In its outlook, Signet said diluted earnings per share for the fourth quarter are projected at $2.05 to $2.10. Diluted earnings per share for the 53 weeks ending Feb. 2, 2013, are projected at $4.28 to $4.33.

Capital spending for Fiscal 2013 is anticipated to be $138 million to $142 million reflecting current estimates of project timing. In addition to the Ultra Stores, Inc acquisition. Signet says it anticipates 48 new US-based stores for the year.

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Another Strong Year for Signet Jewelers

Signet Jewelers, the largest specialty retail jeweler in the U.S. and U.K., continues to benefit from strong retail sales in U.S., which more than offset weaker figures in the U.K.

The Bermuda-based company said Thursday that fourth quarter sales increased 11.8 percent, year-over-year, to $1.51 billion. Same store sales for the period ended Feb. 2, increased 3.5 percent compared to an increase of 6.9 percent in the prior fiscal year. E-commerce sales increased 46.9 percent to $63.9 million.

In its U.S. division sales for the fourth quarter increased 14.2 percent to $1.24 billion. Same store sales increased 4.9 percent compared to an increase of 8.3% in the fourth quarter Fiscal 2012. Sales increases were driven by broad based strength across most merchandise categories in both Kay and Jared retail chains and its acquisition of the Ultra Diamonds retail chain, the fifth largest in the U.S.

In its U.K. division total sales were up 1.8 percent to $268.4 million (fourth quarter Fiscal 2012: $263.7 million). Same store sales fell 1.9 percent compared to an increase of 1.7 percent in the fourth quarter Fiscal 2012. Sales performance was primarily attributed to lower store traffic and increased customer purchases of promotional merchandise, which impacted sales and gross margin.

In Fiscal 2013, Signet's total sales increased 6.2 percent to $3.98 billion. Same store sales were up 3.3 percent compared to an increase of 9 percent in Fiscal 2012. E-commerce sales increased 40.6 percent to $129.8 million.

In the US division total sales for the 2013 fiscal year increased 7.9 percent to $3.27 billion. Same store sales increased 4 percent for the year compared to an increase of 11.1 percent in Fiscal 2012. Sales increases were driven by broad based strength across most merchandise categories in both Kay and Jared, as well as the Ultra acquisition.

The number of merchandise transactions increased in Kay and Jared, the company said. Average merchandise transaction values were up in Kay stores due to changes in sales mix and down in Jared stores due primarily to the discontinuation of Rolex watches. E-commerce sales were $101.4 million compared to $68.5 million in Fiscal 2012, up $32.9 million or 48 percent.

In the U.K. division total sales fell 0.8 percent to $709.5 million. Same store sales increased 0.3 percent compared to an increase of 0.9 percent in Fiscal 2012. Sales performance was primarily attributed to lower traffic particularly in the fourth quarter.

In its guidance the company, which trade on the NYSE, said expectations are for same store sales in the first quarter to be up 5 to 7 percent.

“Signet had an excellent Fiscal 2013 with a 3.3% increase in same store sales and a 16.6 percent increase in earnings per share,” said Mike Barnes, Signet CEO. “The acquisition of Ultra, our share repurchase program and the increase in our quarterly dividend demonstrate our ability to capitalize on our excellent balance sheet to provide for our long-term growth and increase value for our shareholders.”

He added, “We are pleased with our progress quarter-to-date and expect to achieve our goals for the first quarter…. We will continue to advance our expansion goals as we integrate our recently acquired Ultra stores, execute on our multi-channel growth initiatives and expand our store base.”

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Signet Replaces CEO for UK Division

Signet Jewelers said Tuesday that Rob Anderson, CEO of Signet's UK division, will leave the company at the end of July. He will be replaced by Sebastian Hobbs who has been promoted to the new position of managing director for the UK division, effective immediately. Hobbs will report to Mike Barnes, Signet CEO.

The Bermuda-based company is the largest specialty retail jeweler in the US and UK with approximately 1,952 stores (1,449 in the US and 503 in the UK). Its retail chains in the US include Kay, Jared and Ultra Diamonds. In the UK, it owns and operates the H.Samuel and Ernest Jones jewelry chains.

“Seb has made important contributions to our UK division and we believe his experience in UK retailing and strategy make him a perfect fit for this role,” Barnes said.

Hobbs joined Signet's UK division as commercial director in March 2011. From November 2006 till March 2011, he was commercial director of Blacks Leisure Group. Prior to this, he was trading controller for WH Smith, a retail consultant for KPMG, and held management positions at Mothercare and British Home Stores.

Signet’s UK division has been struggling since the financial crisis. In its 2013 fiscal year, the division reported that sales fell 0.8 percent to $709.5 million. Same store sales increased 0.3 percent compared to an increase of 0.9 percent in Fiscal 2012. Sales performance was primarily attributed to lower traffic particularly in the fourth quarter.

By contrast, US division sales for the 2013 fiscal year increased 7.9 percent to $3.27 billion. Same store sales increased 4 percent for the year compared to an increase of 11.1 percent in Fiscal 2012.

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US Sales Remain Strong At Signet Jewelers While UK Sales Disappoint

Signet Jewelers, the largest specialty retail jeweler in the US and the UK, said Thursday that second-quarter year-over-year sales increased 3.1 percent to $880.2 million. Same store sales for the period increased 3.6 percent year-over-year while eCommerce sales grew 7 percent to $31.2 million.

This was offset by a 1.2 percent decline in net income to $67.4 million. During a conference call Thursday, Mike Barnes, Signet CEO, said the decline was primarily due to the costs associated with the acquisition of the Ultra outlet jewelry store chain and the conversion of many of them to Zale Outlet stores, and lower gross margins compared to other Signet holdings. Without Ultra, earnings per share were up 5.9 percent.

In the company’s US division, which now accounts for nearly 85 percent of total sales for the company, sales increased 5.6 percent to $741.1 million. Same store sales increased 4.9 percent for the period. Sales increases were driven by strength in bridal, colored diamonds and watches. Signet owns 1,449 jewelry retail stores that operate under the brand-names Kay, Jared, Kay Outlet stores, Ultra and stores and some regional brands.

Kay and Jared experienced increases in both transaction counts and average transaction value. Meanwhile, eCommerce sales increased 36 percent to $25.3 million.

In the UK division, total sales declined 8.5 percent to $139.1 million in the second quarter. Same store sales decreased 2.4 percent. The company said the sales decline was primarily due to a same store sales decrease of $3.4 million, the impact of closed stores of $5.6 million and currency fluctuation of $3.9 million. Signet owns 500 retail stores that operate under the H.Samuel and Ernest Jones names.

The company said that at Ernest Jones, the number of transactions increased driven primarily by strength in branded bridal and watches, excluding Rolex, and the average transaction value was lower, primarily due to the impact from Rolex being offered in fewer stores. In H.Samuel, the number of transactions declined, primarily due to store closures and lower traffic. This resulted in lower sales across many merchandise categories, partly offset by strength in branded bridal products. Sales in both businesses were impacted by lower bead transactions. UK eCommerce sales in the UK increased 5.4 percent to $5.9 million, which include 45 percent coming to the websites through mobile devices, Barnes said.

Barnes noted during the conference call that Signet is in the process of updating its websites and mobile presence to take advantage of the increased traffic.

Other second quarter highlights:

* Gross margin declined, falling to $309.7 million or 35.2 percent of sales, compared to $311.2 million or 36.4 percent of sales in the second quarter fiscal 2013. The includes the results for Ultra increased gross margin dollars by $5.7 million; however, it reduced the consolidated gross margin rate by 50 basis points and the US gross margin rate by 70 basis points. The Ultra gross margin is lower than the core US business due to lower Ultra store productivity and the impact of the Ultra integration.

* Gross margin dollars in the US increased by $1.3 million compared to second quarter of fiscal 2013, reflecting higher sales offset by a gross margin decrease of 180 basis points. The company said the lower gross margin was primarily attributed to a gross merchandise margin decrease by 50 basis points, attributed to Ultra; and store occupancy and operating costs deleveraged by 70 basis points, of which 40 basis points was due to Ultra. The remaining 30 basis point change was due to the increase of new store openings.

* The US net bad debt ratio increased to 4.9 percent of sales compared to 4.5 percent of sales in prior year second quarter. The increase in the ratio was primarily due to the growth in the outstanding receivable balance. In addition, the US division experienced a “slight decline in collection efficiency” and a change in the credit mix. In the UK, gross margin dollars decreased $2.8 million, primarily reflecting the impact of decreased sales and currency fluctuation offset by a gross margin rate increase of 40 basis points.
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* Selling, general and administrative expenses increased 4.2 percent to $250.5 million. As a percentage of sales, SGA increased by 40 basis points to 28.5 percent. This includes the results for Ultra, which increased SGA by $13.5 million and increased the consolidated SGA rate by 70 basis points. The company said Ultra’s SGA is expected to decline as the final steps of the integration are completed.

* Operating income fell 4.9 percent to $105.5 million. Operating margin declined 100 basis points to 12 percent.

* The US division’s operating income including Ultra declined 4.9 percent to $111.5.

* Operating margin for the US division including Ultra was 15 percent, compared with 16.7 percent in fiscal 2013, down 170 basis points. Excluding Ultra, the US division’s operating income was $119.3 or 16.8 percent of sales, up 10 basis points.

In its guidance, the company said it expects same store sales to rise in the low-single digit for the third quarter.

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