Signet UK sales rise only 0.1% during slower Q2

SIGNET_ernestjonesshop.jpg

Company’s US division remains strong compared to UK sales.

Signet Group has announced its results for the 13 weeks ended July 31 for Q2, with same store sales up 9.9% and total sales reaching $797.6 million (£488.5 million).

Income before income taxes reached $99.8 million (£61 million), up $45.1 million or 82.4% while Signet has enjoyed increased free cash flow guidance to $175 million to $225 million (£138 million).

The UK division’s sales totalled about 20% of annual sales in Q2, with UK sales totalling $154.6 million (£94.6 million), up by $12.6 million (£7.8 million) or 8.8%. However, with a focus on constant exchange rates, sales only rose by 0.1% and same store sales increased by only 1.4% which though small, is a upward trend compared to a decline of 0.5% in the Q2 in last year.

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H. Samuel total sales reached $81.4 million (£49 million), with Ernest Jones sales reaching $73.2 million (£44 million) in Q2. Interestingly, no results were released for Leslie Davies. Average spend in store was £62 for H Samuel and £276 for Ernest Jones, with same-store sales up 3.3% at H Samuel and 0.7% at Ernest Jones.

For the 26 weeks to Juy 31 (H1), total UK sales for Signet were down 0.6% at constant exchange rates and total same-store sales increased by 0.8%, compared to a decline of 0.4% in the 26 weeks ended July 31 2010. The figures show that the UK arm of Signet is still struggling after results released earlier this year showed a similar slowing in trade. A combined 10 stores were closed in H1, bringing Signet’s UK total of stores to 535.

US operations have remained relatively stable for Signet, with store sales up 12.2% in Q2, attributing to 80% of Signet’s overall sales. The US division’s sales totalled $643 million (£393 million), up by $65.3 million or 11.3% on last year’s Q2 results. Same store sales increased by 12.2% compared to a rise of 6.0% in Q2 last year.

Mike Barnes, CEO of Signet said: “During the quarter, our branded jewellery initiatives drove strong US same store sales performance and assisted our UK division’s sales to outperform a challenging retail marketplace. I would like to thank all team members at Signet who contributed to this great performance.”
 

 

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