Signet half year sales up 9.2 percent - JB News Feed

London—Signet Group reported same-store sales for the 26-week financial period ended Aug. 4 were up 3.2 percent overall, while total sales jumped 9.2 percent to $1.6 billion.

Signet's half year profits rose 3.2 percent to $109 million, from $105.6 million in the same period last year.

Sterling, the company's United States division—which includes Kay Jewelers and Jared The Galleria of Jewelry and accounts for about 75 percent of sales—outperformed the $62 billion U.S. retail jewelry sector and gained market share, the company said in a media release.

Comparable store sales for Sterling were up 2.7 percent, while total sales rose by 7.6 percent to $1.2 billion. Underlying growth in same-store sales is estimated to have been 2 percent, after adjusting for the impact of bad weather over Valentine's Day and the benefit of a promotional event at the beginning of the year.

While the U.S. bridal market has been resilient, poor weather over Valentine's Day and a disappointing Mother's Day hurt sales, the release said. In terms of product, white gold jewelry and loose diamonds performed well as did Journey diamond jewelry and circle designs in the necklace category. The average ticket price in the division's mall units and at Jared was up 5 percent due to selective price increases and mix changes, the release said.

Same-store sales in the United Kingdom division were up 4.6 percent for the period.

"Against the background of a challenging retail environment in their respective markets, both divisions performed well," said Group Chief Executive Terry Burman in a statement.

He said the outlook on both sides of the Atlantic was uncertain.

"The important Christmas period will, as usual, significantly influence the outcome for the full year. Both businesses continue to manage costs tightly while implementing proven strategies to strengthen further competitive positions," he said.

There will be a further increase in Kay's advertising expenditures over the holidays, and Jared will begin to use national network television advertising for Christmas 2007 rather than purchase airtime on a local market basis.

And continuing with its five-year, $1 billion investment program, the U.S. division will increase its net store space by 10 percent in 2007-2008.

Signet operates 1,925 specialty retail stores, including 1,350 in the United States.