Signet Q1 Like for Like Sales Up 2.8%

Anglo-American jewelry retailer Signet Group plc like for like sales rose by 2.8 percent in the first quarter from 29 January to 29 April 2006. Total sales were up by 13.7 percent on a reported basis to £419.6 million ($780.1 million) compared to £369.2 million ($684.4 million) for the same period in 2005. At constant exchange rates, the increase was 7.2 percent due to the strengthening of the U.S. dollar, said the company. 

Sales in the U.S., which account for 78.2 percent of the group’s total sales, were £328.3 million ($610.4 million), up 3.9 percent over 2005. Signet said that the growth in U.S. total sales in the quarter is estimated to have been adversely affected by over 3 percent resulting from a change in the timing of Mother’s Day. Like for like sales have been similarly affected.

U.K sales totaled £91.3 million ($169.7 million), a decrease of 0.7 percent. Like for like sales at the H.Samuel division fell by 2.4 percent, while Ernest Jones increased its performance by 1.3 percent.

Terry Burman, Group CEO said, “The U.S. division had a strong first quarter with underlying like for like sales up by over 7 percent after taking account of the change in timing of Mother’s Day. In the UK, the general retail environment remains challenging and divisional like for like sales showed a small decrease of 0.7 percent. As indicated at the time of the preliminary results, there has been some reduction in gross margin in both divisions.”

The first quarter earnings results for the 13 weeks ended 29 April 2006 are expected to be announced on Friday 9 June 2006 at 7.30 a.m. (BST)

Signet operated 1,837 specialty retail jewelry stores at 29 April 2006; these included 1,246 stores in the U.S., where the Group trades as “Kay Jewelers”, “Jared The Galleria Of Jewelry” and under a number of regional names. Signet operated 591 stores in the UK, where the Group trades as “H.Samuel,” “Ernest Jones,” and “Leslie Davis.”