November 22, 2005
Signet Announces Third Quarter Results
Signet Group announced its third quarter results on Nov. 22. Same store
sales in the U.S. in the 13 week period to Oct. 29, were up by 6.6%;
performance during the latter two months of the period, although less
strong, remained solid. While store closures due to U.S. hurricanes had
little effect on the third quarter, potential uninsured losses are expected
to have some impact on the fourth quarter, the company said in a press
In the 39 week period, US operating profit was up by 19.3% at constant
exchange rates and by 18.1% on a reported basis. Same store sales rose by
7.6%. Total sales advanced by 12.4% at constant exchange rates and by 11.2%
on a reported basis.
Signet said the U.S. division continues to benefit from actions to further
enhance merchandise ranges including the expansion of the Leo Diamond
assortment, development of the loose diamond and large solitaire ring
selection, growth of fashion gold merchandise and further extension of
luxury watch ranges in the Jared Galleria of Jewelry stores.
The holiday season will again see an increase in Kay national television advertising and Jared will have local television advertising support in all stores for the first time. JB Robinson, the division's leading regional brand, will begin testing television advertising in one local market.
Annual spending on marketing as a proportion of sales is planned to be
slightly higher than last year due to the expansion of Jared. Net new space
growth during 2005/06 is expected to be about 9%, of which Jared will
account for some 60%.