7th Aug 2008 12:30
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Signet Group plc (LSE and NYSE: SIG)
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Embargoed until 12.30 p.m. (BST)
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7 August 2008
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Signet REPORTS SECOND Quarter SALES
Signet Group plc, the world's largest speciality retail jeweller, today announced its sales performance for the 13 and 26 weeks ended 2 August 2008.
13 WEEKS ENDED 2 AUGUST 2008
Group like for like sales fell 4.5% in the 13 week period. Total sales were down 2.4% on a reported basis to $768.6 million (13 weeks to 4 August 2007: $787.4 million) reflecting an underlying decrease of 1.9% at constant exchange rates (see Note 1). The breakdown of the sales performance was as follows:
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Sales |
Change on Previous Year |
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$m |
% of Total |
Reported |
At Constant Exchange Rates |
Like for Like |
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US |
575.4 |
74.9% |
(1.6)% |
(1.6)% |
(5.8)% |
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UK |
193.2 |
25.1% |
(4.8)% |
(3.0)% |
(0.6)%(a) |
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GROUP |
768.6 |
100.0% |
(2.4)% |
(1.9)% |
(4.5)% |
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(a) Like for like sales: H.Samuel (0.4)% and Ernest Jones (0.8)%.
26 WEEKS ENDED 2 AUGUST 2008
Group like for like sales were down by 3.4% in the 26 week period. Total sales were down 0.7% on a reported basis to $1,591.1 million (26 weeks to 4 August 2007: $1,601.8 million) reflecting an underlying decrease of 0.5% at constant exchange rates (see Note 1). The average US dollar exchange rate for the period was £1/$1.98 (2007/08 H1: £1/$1.99). The breakdown of the sales performance was as follows:
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Sales |
Change on Previous Year |
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$m |
% of Total |
Reported |
At Constant Exchange Rates |
Like for Like |
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US |
1,206.5 |
75.8% |
(0.9)% |
(0.9)% |
(5.2)% |
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UK |
384.6 |
24.2% |
(0.1)% |
0.4% |
2.3%(b) |
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GROUP |
1,591.1 |
100.0% |
(0.7)% |
(0.5)% |
(3.4)% |
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(b) Like for like sales: H.Samuel 2.4% and Ernest Jones 2.2%.
Terry Burman, Group Chief Executive, commented, "In the first half, Group like for like sales were down 3.4% reflecting the continuing difficult trading environment in both the US and UK.
In the second quarter, the underlying like for like sales in the US remained at a similar level to that seen since the start of the year. The results of the price increases continue to be encouraging and we remain on target to at least maintain at last year's level our full year gross merchandising margin rate. In the UK, as expected, the like for like sales growth of the first quarter was not maintained. However, the second quarter was still encouraging given the demanding comparatives, and the division's continued out-performance of the non-food retail category."
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Enquiries:
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Terry Burman, Group Chief Executive
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+44 (0) 20 7317 9700
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Walker Boyd, Group Finance Director
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+44 (0) 20 7317 9700
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Jonathan Glass, Brunswick
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+44 (0) 20 7404 5959
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Wendel Verbeek, Brunswick
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+44 (0) 20 7404 5959
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Signet operated 1,973 speciality retail jewellery stores at 2 August 2008; these included 1,414 stores in the US, where the Group trades as "Kay Jewelers", "Jared The Galleria Of Jewelry" and under a number of regional names. At that date Signet operated 559 stores in the UK, where the Group trades as "H.Samuel", "Ernest Jones" and "Leslie Davis". Further information on Signet is available at www.signetgroupplc.com. See also www.kay.com, www.jared.com, www.hsamuel.co.uk and www.ernestjones.co.uk.
Investor Relations' Programme Details
Investor Day and Store Tour, Akron, Ohio Tuesday, 12 August 2008
An Investor Day and Store Tour for professional investors will be held in Akron, Ohio on Tuesday, 12 August 2008.
Half Year Results
The half year results for the 26 weeks ended 2 August 2008 are expected to be announced on Wednesday, 3 September 2008 at 12.30 p.m. (BST) and a conference call on that day for all interested parties is expected to take place at 2.00 p.m. (BST). The call will be broadcast on the Signet Group website (www.signetgroupplc.com). The details for the conference call are:
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European dial-in:
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+44 (0) 20 7138 0840
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Access code: 9840702
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European 48 hr. replay:
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+44 (0) 20 7806 1970
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Access code: 9840702#
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US dial-in:
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+1 718 354 1362
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Access code: 9840702
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US 48 hr. replay:
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+1 718 354 1112
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Access code: 9840702#
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Note 1 - Impact of constant exchange rates
The Group has historically used constant exchange rates to compare period-to-period changes in certain financial data. This is referred to as 'at constant exchange rates' throughout this release. The Group considers this to be a useful measure for analysing and explaining changes and trends in the Group's results. The impact of the re-calculation of sales at constant exchange rates, including a reconciliation to the Group's GAAP sales, is shown below.
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13 weeks ended 2 August 2008 |
13 weeks ended 2 August 2008 as reported |
13 weeks ended 4 August 2007 as reported |
Growth at actual exchange rates |
Impact of exchange rate movement |
13 weeks ended 4 August 2007 at constant exchange rates (non-GAAP) |
Growth at constant exchange rates (non-GAAP) |
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$m |
$m |
% |
$m |
$m |
% |
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Sales by origin and destination |
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US |
575.4 |
584.6 |
(1.6)% |
- |
584.6 |
(1.6)% |
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UK, Channel Islands & Republic of Ireland |
193.2 |
202.8 |
(4.7)% |
(3.8) |
199.1 |
(3.0)% |
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768.6 |
787.4 |
(2.4)% |
(3.8) |
783.7 |
(1.9)% |
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26 weeks ended 2 August 2008 |
26 weeks ended 2 August 2008 as reported |
26 weeks ended 4 August 2007 as reported |
Growth at actual exchange rates |
Impact of exchange rate movement |
26 weeks ended 4 August 2007 at constant exchange rates (non-GAAP) |
Growth at constant exchange rates (non-GAAP) |
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$m |
$m |
% |
$m |
$m |
% |
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Sales by origin and destination |
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US |
1,206.5 |
1,216.9 |
(0.9)% |
- |
1,216.9 |
(0.9)% |
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UK, Channel Islands & Republic of Ireland |
384.6 |
384.9 |
(0.1)% |
(1.9) |
383.0 |
0.4% |
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1,591.1 |
1,601.8 |
(0.7)% |
(1.9) |
1,599.9 |
(0.5)% |
This release includes statements which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, based upon management's beliefs as well as on assumptions made by and data currently available to management, appear in a number of places throughout 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 to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties, including but not limited to general economic conditions, the merchandising, pricing and inventory policies followed by the Group, the reputation of the Group, the level of competition in the jewellery sector, the price and availability of diamonds, gold and other precious metals, seasonality of the Group's business and financial market risk.
For a discussion of these and other risks and uncertainties which could cause actual results to differ materially, see the "Risk and other factors" section of Signet's Annual Report & Accounts for the year ended 2 February 2008 furnished as an exhibit to its Report on Form 6-K furnished with the U.S. Securities and Exchange Commission on 1 May 2008 and other filings with and submissions to the SEC made by Signet. Actual results may differ materially from those anticipated in such forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein may not be realised. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances, other than as required by applicable law, rule or regulation.
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