2nd Nov 2006 12:30
Signet Group PLC02 November 2006 Signet Group plc (LSE: SIG and NYSE: SIG) Embargoed until 12.30 p.m. (GMT) 2 November 2006 SIGNET LIKE FOR LIKE SALES UP 5.4% IN THIRD QUARTER INTENTION TO MOVE TO US DOLLAR REPORTING 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 28 October 2006. 13 WEEKS TO 28 OCTOBER 2006 Group like for like sales rose by 5.4% in the 13 weeks to 28 October 2006. Totalsales were up 9.5% at constant exchange rates (see note 1) and by 5.7% on areported basis to £328.3 million (13 weeks to 29 October 2005: £310.5 million).The increase in total sales for the quarter as reported has been adverselyimpacted by the retranslation of the first half US dollar sales at thecumulative average exchange rate for the year to date. The breakdown of saleswas as follows: Sales Change on Previous Year -------------------------- £m % of Total Reported At Constant Like for Like Exchange Rates US 235.5 71.7% 7.0% 12.6% 6.5%UK 92.8 28.3% 2.5% 2.5% 3.0%(a)GROUP 328.3 100.0% 5.7% 9.5% 5.4% (a) Like for like sales: H.Samuel up by 1.7% and Ernest Jones up by 4.4%. 39 WEEKS TO 28 OCTOBER 2006 Group like for like sales rose by 5.3% in the 39 weeks to 28 October 2006. Totalsales were up by 10.2% to £1,138.8 million (39 weeks to 29 October 2005:£1,033.4 million) reflecting an underlying increase of 9.8% at constant exchangerates (see note 1). The average US dollar exchange rate for the period was £1/$1.83 (39 weeks to 29 October 2005: £1/$1.84). The breakdown was as follows: Sales Change on Previous Year £m % of Total Reported At Constant Like for Like Exchange RatesUS 860.4 75.6% 13.3% 12.6% 6.9%UK 278.4 24.4% 1.7% 1.7% 0.9%(b)GROUP 1,138.8 100.0% 10.2% 9.8% 5.3% (b) Like for like sales: H.Samuel down by 0.5% and Ernest Jones up by 2.7%. Terry Burman, Group Chief Executive, commented "The Group has had another goodquarter with like for like sales up by 5.4%. Total sales rose by 9.5% atconstant exchange rates. For the year to date, like for like sales increased by5.3% and total sales by 9.8% at constant exchange rates. In the quarter, the UK division continued its improving trend with like for likesales growth of 3.0%. Both Ernest Jones and H.Samuel showed increases for theperiod. The US business continued to perform strongly with like for like sales6.5% ahead." INTENTION TO MOVE TO US DOLLAR REPORTING To better reflect its underlying performance the Group intends, subject to thenecessary approvals, to report its financial statements in US dollars from thecommencement of its next fiscal year on 4 February 2007. Currently over 70% ofthe Group's sales, operating profit and net assets, including predominantly allits borrowings, are denominated in US dollars. The Directors will therefore seek shareholder approval for Signet Group plc (the"Company") to redenominate its share capital into US dollars at an extraordinarygeneral meeting of shareholders on 12 December 2006. The redenomination, whichis also subject to Court approval, is expected to be effective on 5 February2007. Dealings in the new dollar denominated shares should therefore commence at8.00 a.m. on 5 February 2007. As a consequence of the above changes, the Company anticipates that itsfunctional currency will change to US dollars from the commencement of its nextfiscal year. In addition, future dividends will be declared in US dollars, butfor those shareholders with a UK address or who so elect, dividends willcontinue to be paid in sterling. The Company will continue to be registered and have its headquarters in Englandand will maintain its primary listing on the London Stock Exchange, with theshares quoted in sterling. It will also maintain a listing on the New York StockExchange, with the American Depositary Receipts quoted in US dollars. An unaudited pro forma Group quarterly and full year income statement for theyear ended 28 January 2006 and the quarterly results for the first two quartersof the year ending 3 February 2007, translated into US dollars at the averagerates then prevailing are set out in note 2. Enquiries: Terry Burman, Group Chief Executive +44 (0) 20 7317 9700 Walker Boyd, Group Finance Director +44 (0) 20 7317 9700 Tom Buchanan, Brunswick +44 (0) 20 7404 5959 Pamela Small, Brunswick +44 (0) 20 7404 5959 Signet operated 1,875 speciality retail jewellery stores at 28 October 2006;these included 1,290 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 585 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. See also www.kay.com, www.jared.com, www.hsamuel.co.ukand www.ernestjones.co.uk. Investor Relations Programme Details The results for the 13 and 39 week periods to 28 October 2006 are expected to beannounced at 12.30 p.m. (GMT) on Tuesday 21 November 2006. On that day therewill be a conference call chaired by Terry Burman at 2.00 p.m. (GMT) (9.00 a.m.Eastern Time and 6.00 a.m. Pacific Time) and a simultaneous audiocast availableat www.signetgroupplc.com. The details for the conference call on the resultsare: European dial-in: +44 (0) 20 7806 1961 European 48hr replay: +44 (0) 20 7806 1970 Access code: 9661433# US dial-in: +1 718 354 1391 US 48hr replay: +1 718 354 1112 Access code: 9661433# Investor Day and Store Tour, Akron, Ohio, Thursday 10 May 2007 It is intended to hold an Investor Day and Store Tour for professional investorsin Akron, Ohio on Thursday 10 May 2007. Note 1 - Impact of constant exchange rates The 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 28 13 weeks to 13 weeks to Growth at Impact of At constant Growth atOctober 2006 28 October 29 October actual exchange exchange constant 2006 2005 exchange rate rates exchange as reported as reported rates movement (non-GAAP) rates (non-GAAP) ------------------ ------- ------- ------- ------- ------- ------- £m £m % £m £m % ------------------ ------- ------- ------- ------- ------- -------Sales by origin anddestinationUK, ChannelIslands &Republic ofIreland 92.8 90.5 2.5 - 90.5 2.5US 235.5 220.0 7.0 (10.8) 209.2 12.6------------------ ------- ------- ------- ------- ------- ------- 328.3 310.5 5.7 (10.8) 299.7 9.5------------------ ------- ------- ------- ------- ------- ------- 39 weeks to 28 39 weeks to 39 weeks to Growth at Impact of At constant Growth atOctober 2006 28 October 29 October actual exchange exchange constant 2006 2005 exchange rate rates exchange as reported as reported rates movement (non-GAAP) rates (non-GAAP) ------------------ ------- ------- ------- ------- ------- ------- £m £m % £m £m % ------------------ ------- ------- ------- ------- ------- -------Sales by origin anddestinationUK, ChannelIslands &Republic ofIreland 278.4 273.8 1.7 - 273.8 1.7US 860.4 759.6 13.3 4.2 763.8 12.6------------------ ------- ------- ------- ------- ------- ------- 1,138.8 1,033.4 10.2 4.2 1,037.6 9.8 ------------------ ------- ------- ------- ------- ------- ------- Note 2 - US dollar reporting Set out below is an unaudited pro forma Group quarterly and full year incomestatement for the year ended 28 January 2006 and the quarterly results for thefirst two quarters of the year ending 3 February 2007, translated into USdollars at the average rates then prevailing. SIGNET GROUP plcUnaudited Pro Forma Income Statement in US $ Year ended 28 January 2006 Q1 Q2 Half Year Q3 Q4 Year $m $m $m $m $m $m----------------- ------- -------- -------- ------- -------- --------Sales 697.8 646.8 1,344.6 556.9 1,252.6 3,154.1Cost of sales (629.4) (586.7) (1,216.1) (538.3) (975.0) (2,729.4)----------------- -------- -------- -------- -------- -------- --------Gross profit 68.4 60.1 128.5 18.6 277.6 424.7Administrativeexpenses (34.8) (33.1) (67.9) (28.6) (36.8) (133.3)Otheroperatingincome 22.1 20.5 42.6 19.0 21.7 83.3----------------- -------- -------- -------- -------- -------- --------Operatingprofit 55.7 47.5 103.2 9.0 262.5 374.7Finance income 5.1 4.4 9.5 3.4 4.0 16.9Finance expense (8.1) (7.7) (15.8) (7.9) (7.2) (30.9)----------------- -------- -------- -------- -------- -------- --------Profit beforetax 52.7 44.2 96.9 4.5 259.3 360.7Taxation (18.1) (15.4) (33.5) (1.5) (90.3) (125.3)----------------- -------- -------- -------- -------- -------- --------Profit for thefinancialperiod 34.6 28.8 63.4 3.0 169.0 235.4----------------- -------- -------- -------- -------- -------- ------------------------- -------- -------- -------- -------- -------- --------Earning per share - basic 2.0c 1.7c 3.7c 0.2c 9.7c 13.6c - diluted 2.0c 1.6c 3.6c 0.2c 9.7c 13.5c------------------ -------- -------- -------- -------- -------- -------- Segmental information ----------------------------------------------------------------------------------- Sales by origin and destinationUK, Channel Islands & Republic of Ireland 172.5 168.4 340.9 162.9 341.5 845.3US 525.3 478.4 1,003.7 394.0 911.1 2,308.8----------------- -------- -------- -------- -------- -------- -------- 697.8 646.8 1,344.6 556.9 1,252.6 3,154.1----------------- -------- -------- -------- -------- -------- -------- Operating profit/(loss)UK, Channel Islands& Republic ofIreland - Trading (0.8) (3.8) (4.6) (4.4) 97.4 88.4 - Group central costs (2.8) (3.1) (5.9) (2.8) (5.7) (14.4) ------------------- -------- -------- -------- -------- -------- -------- (3.6) (6.9) (10.5) (7.2) 91.7 74.0US 59.3 54.4 113.7 16.2 170.8 300.7------------------- -------- -------- -------- -------- -------- -------- 55.7 47.5 103.2 9.0 262.5 374.7------------------- -------- -------- -------- -------- -------- -------- SIGNET GROUP plcUnaudited Pro Forma Income Statement in US $ Year ending 3 February 2007 Q1 Q2 Half Year $m $m $m------------------------ ---------- ---------- ----------Sales 734.3 732.9 1,467.2Cost of sales (667.3) (665.9) (1,333.2)------------------------ ---------- ---------- ----------Gross profit 67.0 67.0 134.0Administrative expenses (33.8) (34.4) (68.2)Other operating income 23.1 23.4 46.5------------------------ ---------- ---------- ----------Operating profit 56.3 56.0 112.3Finance income 5.1 8.7 13.8Finance expense (7.7) (12.8) (20.5)------------------------ ---------- ---------- ----------Profit before tax 53.7 51.9 105.6Taxation (19.3) (18.3) (37.6)------------------------ ---------- ---------- ----------Profit for the financial period 34.4 33.6 68.0------------------------ ---------- ---------- ---------- Earning per share - basic 2.0c 1.9c 3.9c - diluted 2.0c 1.9c 3.9c------------------------ ---------- ---------- ---------- Segmental information------------------------------------------------------------------------- Sales by origin and destinationUK, Channel Islands & Republic of 159.8 176.3 336.1IrelandUS 574.5 556.6 1,131.1------------------------ ---------- ---------- ---------- 734.3 732.9 1,467.2------------------------ ---------- ---------- ---------- Operating profit/(loss)UK, Channel Islands & Republic ofIreland - Trading (2.8) (3.4) (6.2)- Group central costs (3.6) (3.0) (6.6)------------------------ ---------- ---------- ---------- (6.4) (6.4) (12.8)US 62.7 62.4 125.1------------------------ ---------- ---------- ---------- 56.3 56.0 112.3------------------------ ---------- ---------- ---------- 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 Company 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 2005/06 Annual Report on Form 20-F filed with the U.S. Securitiesand Exchange Commission on May 4, 2006 and other filings made by the Companywith the Commission. Actual results may differ materially from those anticipatedin such forward-looking statements even if experience or future changes make itclear that any projected results expressed or implied therein may not berealised. The Company undertakes no obligation to update or revise anyforward-looking statements to reflect subsequent events or circumstances. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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