3rd Nov 2005 12:30
Signet Group PLC03 November 2005 Embargoed until 12.30 p.m. (GMT) 3 November 2005 SIGNET LIKE FOR LIKE SALES UP 1.8% IN THIRD QUARTER Signet Group plc (LSE: SIG and NYSE: SIG), the world's largest speciality retailjeweller, today announced its sales performance for the 13 weeks and for the 39weeks to 29 October 2005. 13 WEEKS TO 29 OCTOBER 2005 In the 13 week period Group sales rose by 5.7% to £310.4 million (13 weeks to 30October 2004: £293.7 million, see Note 1) reflecting an underlying increase of5.5% at constant exchange rates (see Note 2). Like for like sales advanced by1.8%. The breakdown of sales was as follows: Sales(a) Change on Previous Year ---------- ------------------------------ £m % of Total Reported At Constant Like for Like Exchange Rates US 220.0 70.9 12.1% 11.8% 6.6% UK 90.4 29.1 -7.2% -7.2% -8.1%(b) GROUP 310.4 100.0 5.7% 5.5% 1.8% (a) Sales figures in this announcement have been reported using International Financial Reporting Standards ("IFRS"). A reconciliation to the previously announced figures for the 13 weeks to 30 October 2004 is set out in Note 1. There is no material impact on like for like sales figures.(b) H.Samuel like for like sales were down by -9.3% and Ernest Jones by -6.7%. 39 WEEKS TO 29 OCTOBER 2005 In the 39 week period Group sales rose by 5.7% to £1,033.3 million (39 weeks to30 October 2004: £978.0 million, see Note 1) reflecting an underlying increaseof 6.5% at constant exchange rates (see Note 2). The average US dollar exchangerate for the period was £1/$1.84 (39 weeks to 30 October 2004: £1/$1.82). Likefor like sales advanced by 2.9%. The breakdown was as follows: Sales(c) Change on Previous Year ---------- ------------------------------ £m % of Total Reported At Constant Like for Like Exchange Rates US 759.6 73.5 11.2% 12.4% 7.6% UK 273.7 26.5 -7.1% -7.1% -7.9%(d) GROUP 1,033.3 100.0 5.7% 6.5% 2.9% (c) Sales figures in this announcement have been reported using International Financial Reporting Standards ("IFRS"). A reconciliation to the previously announced figures for the 39 weeks to 30 October 2004 is set out in Note 1. There is no material impact on like for like sales figures.(d) H.Samuel like for like sales were down by -8.7% and Ernest Jones by -7.0%. COMMENT Terry Burman, Group Chief Executive, commented "In the third quarter Group salesrose by 5.7%, the like for like increase being 1.8%. UK like for like sales were down by 8.1% against a background of difficulttrading conditions. The US business, which accounts for some 70% of Group sales, had another goodquarter with like for like sales up 6.6%. Performance during the latter twomonths of the period, although less strong, remained solid. Pending the outcome of the all important fourth quarter, which represents some40% of annual sales, we believe that the range of analysts' pre-tax profitestimates for the year as a whole should be wider than presently forecast, withan upper level no higher than that of last year (restated for IFRS). Factorscontributing to this view include the continuation of difficult tradingconditions in the UK, some additional easing of the US gross margin andpotential uninsured costs arising from the hurricanes." Enquiries: Terry Burman, Group Chief Executive ) +44 (0) 20 7399 9520 Walker Boyd, Group Finance Director ) Mike Smith, Brunswick ) +44 (0) 20 7404 5959 Pamela Small, Brunswick ) Signet operated 1,803 speciality retail jewellery stores at 29 October 2005;these included 1,202 stores in the US, where the Group trades as "Kay Jewelers","Jared The Galleria Of Jewelry" and under a number of regional names. At thatdate Signet operated 601 stores in the UK, where the Group trades as "H.Samuel","Ernest Jones" and "Leslie Davis". Further information on Signet is available atwww.signetgroupplc.com. Investor Relations Programme Details The third quarter results for the period to 29 October 2005 will be announced at12.30 p.m. (GMT) on Tuesday 22 November 2005. On that day there will be aconference call chaired by Terry Burman at 2.00 p.m. (GMT) (9.00 a.m. EasternTime and 6.00 a.m. Pacific Time) and a simultaneous webcast available atwww.signetgroupplc.com. The details for the conference call on the third quarterresults are: UK dial-in: +44 (0) 20 7365 1850 US dial-in: +1 718 354 1172 UK 48hr replay: +44 (0) 20 7784 1024 Pass code: 8156410 # US 48hr replay: +1 718 354 1112 Pass code: 8156410 # Note 1 - Prior period restatement Group sales have been restated to reflect changes in accounting standards. Setout below is a reconciliation of sales for the 13 weeks and for the 39 weeks to30 October 2004: 13 weeks to 30 October 2004 US UK Group------------------------------- --------- --------- --------- £m £m £m------------------------------- --------- --------- ---------As previously reported under UK GAAP 193.8 98.3 292.1US extended service agreements restated(1) (0.4) - (0.4) --------- --------- ---------Sales restated under UK GAAP 193.4 98.3 291.7IFRS adjustments: US insurance income 2.5 - 2.5 Voucher promotions - - - Movement in returns provision 0.4 0.4 0.8 UK warranty sales - (1.3) (1.3)------------------------------- --------- --------- ---------Sales in accordance with IFRS 196.3 97.4 293.7------------------------------- --------- --------- --------- 39 weeks to 30 October 2004 US UK Group------------------------------- --------- --------- --------- £m £m £m------------------------------- --------- --------- ---------As previously reported under UK GAAP 665.2 298.6 963.8US extended service agreements restated(1) (2.3) - (2.3) --------- --------- ---------Sales restated under UK GAAP 662.9 298.6 961.5 IFRS adjustments: US insurance income 7.7 - 7.7 Voucher promotions 9.7 - 9.7 Movement in returns provision 3.0 - 3.0 UK warranty sales - (3.9) (3.9)------------------------------- --------- --------- ---------Sales in accordance with IFRS 683.3 294.7 978.0------------------------------- --------- --------- --------- (1) Following the adoption of the amendment to FRS 5, "Application Note G -Revenue Recognition" for the 52 weeks ended 29 January 2005. Note 2 - Impact of constant exchange ratesThe Group has historically used constant exchange rates to compareperiod-to-period changes in certain financial data. This is referred to as "atconstant exchange rates" throughout this release. The Group considers this to bea useful measure for analysing and explaining changes and trends in the Group'sresults. The impact of the re-calculation of sales at constant exchange rates,including a reconciliation to the Group's GAAP sales, is shown below: 13 weeks to 29October 2005 Growth at 13 weeks to 13 weeks to Growth at Impact of At constant constant 29 October 30 October actual exchange exchange exchange 2005 2004 exchange rate rates rates as reported as reported rates movement (non-GAAP) (non-GAAP)--------------------- ------- ------- ------- ------- ------- ------- £m £m % £m £m %--------------------- ------- ------- ------- ------- ------- -------Sales by origin anddestinationUK, Channel Islands & 90.4 97.4 -7.2 - 97.4 -7.2Republic of Ireland US 220.0 196.3 12.1 0.5 196.8 11.8 310.4 293.7 5.7 0.5 294.2 5.5 39 weeks to 29October 2005 Growth at 39 weeks to 39 weeks to Growth at Impact of At constant constant 29 October 30 October actual exchange exchange exchange 2005 2004 exchange rate rates rates as reported as reported rates movement (non-GAAP) (non-GAAP)--------------------- ------- ------- ------- ------- ------- ------- £m £m % £m £m %--------------------- ------- ------- ------- ------- ------- ------- Sales by origin anddestinationUK, Channel Islands & 273.7 294.7 -7.1 - 294.7 -7.1Republic of Ireland US 759.6 683.3 11.2 (7.4) 675.9 12.4 1,033.3 978.0 5.7 (7.4) 970.6 6.5 This release includes statements which are forward-looking statements within themeaning of the Private Securities Litigation Reform Act of 1995. Thesestatements, based upon management's beliefs as well as on assumptions made byand data currently available to management, appear in a number of placesthroughout this release and include statements regarding, among other things,our results of operation, financial condition, liquidity, prospects, growth,strategies and the industry in which the Group operates. Our use of the words"expects," "intends," "anticipates," "estimates," "may," "forecast,""objective," "plan" or "target," and other similar expressions are intended toidentify forward-looking statements. These forward-looking statements are notguarantees of future performance and are subject to a number of risks anduncertainties, including but not limited to general economic conditions, themerchandising, pricing and inventory policies followed by the Group, thereputation of the Group, the level of competition in the jewellery sector, theprice and availability of diamonds, gold and other precious metals, seasonalityof the Group's business and financial market risk. For a discussion of these and other risks and uncertainties which could causeactual results to differ materially, see the "Risk and Other Factors" section ofthe Company's 2004/05 Annual Report on Form 20-F filed with the U.S. Securitiesand Exchange Commission on May 3, 2005 and other filings made by the Companywith the Commission, which are available on the Company's website. Actualresults may differ materially from those anticipated in such forward-lookingstatements even if experience or future changes make it clear that any projectedresults expressed or implied therein may not be realised. The Company undertakesno obligation to update or revise any forward-looking statements to reflectsubsequent events or circumstances. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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