Sales across the Signet Group portfolio jumped by 44.9% to $1,530.6 million (£999.6m) in Q1 2015, with branded bridal and fashion diamond jewellery performing strongly in the UK.
The results for the 13 weeks ended May 2 2015 show slight decreases in UK jewellery division sales, “driven entirely by the unfavourable impact of foreign currency exchange”. However, the Group stresses that the net impact to operating profit from foreign exchange was negligible.
Branded bridal, fashion diamond jewellery and fashion watches were the strongest categories across the UK, with the number of transactions and average transaction price across the UK increasing by 2.6% and 3.6% respectively.
Overall H Samuel generated $74.8m (£48.8) and Ernest Jones $71.7(£46.8m) in sales over the 13 week period. eCommerce sales in Q1 2015 reached $76.9m (£49.9m), up a staggering 98.7%.
Much of the company’s success can be accredited to the acquisition of Zale Corporation in May 2014, which contributed $437.1m of sales to Signet’s Q1 2015 results.
|eCommerce sales in Q1 2015 reached $76.9m (£4Mark Light, chief executive officer of Signet, said, “We delivered a very strong first quarter of 3.6% same store sales and a 25.6% increase in adjusted EPS. Each of our divisions had impressive same store sales increases, led by our UK division with an increase of 6.2%, while our newest division, Zale, had a 5.6% increase. The Sterling division had a 2.3% same store increase — its 22nd consecutive quarterly comp increase. These results afforded us the opportunity to repurchase $21.9 million of Signet stock in the first quarter, in-line with our capital allocation plan.”We continue to see favourable progress of our integration of the Zale division. As we implement new operating initiatives and deploy incremental capital resources, the Zale division has begun, as expected, to grow its same store sales faster than Signet overall. We expect this trend to continue, and we remain well-positioned to meet our goal of $150 million to $175 million in cumulative 3-year operating profit synergies by the end of January 2018.|
“I want to congratulate and thank all Signet team members for their contributions to our impressive first quarter results.”