Signet U.S. Sales Strong, Profit Within Range of Market Expectations

Signet Group has announced its quarterly sales rose by 10.2 percent at constant exchange rates and by 1.4 percent on a reported basis.

According to Terry Burman, Group chief executive, “Group like for like sales were up 5.9% over the nine week period with a strong performance by the U.S. business (c.74% of group sales) and, in a challenging marketplace, a satisfactory outcome by the UK division. Profit before tax for 2006/07 is currently expected to be within the range of market estimates and to fall between £205 million and £212 million on a 53 week basis."

"In the US, the business again significantly outperformed its main competition and increased market share. Like for like sales rose by 7.5% and total dollar sales increased by 13.9% further extending the consistent growth record of the division. Jared, the off-mall destination superstores, performed strongly, as did Kay, which built further on its sector-leading position. The divisional operating profit is anticipated to be ahead for the year as a whole."

"In the UK, like for like sales increased by 1.7% and full year divisional operating profit is expected to be ahead of last year. The business continues to achieve a healthy operating margin, a good return on capital and strong cash flow."

As of December 30, 2006, Signet operated 1,896 specialty retail jewelry including 1,314 stores in the US, where the Group trades as "Kay Jewelers," "Jared The Galleria Of Jewelry" and under a number of regional names. Signet also operated 582 stores in the UK, where the Group trades as "H.Samuel," "Ernest Jones" and "Leslie Davis."

Signet Group is the world's largest specialty retail jeweler.