Signet now largest US speciality jewellery retailer by sales

12 Apr '06

2 min read

Fine jewelry retailer Signet Group plc announces the preliminary results for year ended 28 January 2006.

- Group total sales: £1,752.3m up 8.5 percent
- Group like for like sales up 2.4 percent
- Group profit before tax: £200.4m down 1.7 percent
- Earnings per share: 7.5p down 3.8 percent
- Total annual dividend per share: 3.3p up 10.0 percent

These results have been prepared in accordance with International Financial Reporting Standards (IFRS), see note 13 for further details.

US: Division now largest US speciality jewellery retailer with 8.2 percent market share
- Kay strengthened its No.1 speciality brand position with sales up 9.9 percent to $1,290m
- Jared joined top-five brands in sector with sales of $534m
- Rough diamond sourcing initiative commenced
- $1 billion new store investment programme over next five years

UK: Diamonds now 29 percent of product mix, versus 22 percent in 2000/01
- 228 stores trading in modernised format

Terry Burman, Group Chief Executive, commented: “The US business again significantly outperformed its main competition and gained further market share. The business has now become the largest US speciality jewellery retailer by sales. Over the next five years it is planned to invest some $1 billion in new US store space. In the longer term there is the potential to double the number of stores.”

Despite very challenging trading conditions, which resulted in a fall in profitability, the UK business still achieved a healthy 10.5 percent operating margin, a 26.6 percent return on capital employed and strong cash flow. While the UK business has undergone significant changes in recent years there are still many opportunities for further improvement.

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