Jewellery retailer Signet total group sales rise 7.9%

25 Dec '07

3 min read

As expected the gross margin was down a little more than in the first half as a result of further commodity cost increases and changes in the sales mix, partially offset by supply chain initiatives. The trend in the fourth quarter is anticipated to be similar. Costs were closely controlled and inventory levels were as planned.

In the 39 week period, total sales advanced by 8.3% to $1,705.1 million (39 weeks to 28 October 2006: $1,574.5 million). Like for like sales rose by 2.7%. US operating profit was $137.8 million (39 weeks to 28 October 2006: $144.2 million).

The operating margin was 8.1% (39 weeks to 28 October 2006: 9.2%). The bad debt charge was 3.3% of total sales (39 weeks to 28 October 2006: 2.9%), and remained comfortably in the range of the last 10 years.

The quality of execution in all areas of the business continued to be improved, with the focus on staff training and customer service remaining a priority. In merchandising, the right hand ring and Journey ranges continue to be developed, the solitaire and Leo diamond selections have been expanded, new designs from Le Vian have been introduced and in Jared, the Peerless Diamond is increasingly popular.

There will be a further increase in Kay national television advertising during the holiday season and Jared will have national television advertising support on both network and cable channels for the first time. Advertising for the divisions regional brands will be on asimilar basis to last year.

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