Signet Q1 Sales U.S. Sales Down 1% to $625 Million

Signet Jewelers Ltd reported first quarter sales of $762.6 million, falling 7.3 percent from last year. U.S. sales declined a marginal 1 percent to $625 million, while UK sales were down 1.8 percent at constant exchange rates and by 28.1 percent as reported to $137.7 million.

Same store sales during the quarter decreased 2.9 percent, "an encouraging performance," according to the company.

The U.S. division gained market share despite a 2.6 percent decrease in same store sales. Average item selling price decreased by 9 percent in the mall brands and, on an underlying basis, by 7 percent in Jared. While Kay achieved an increase in same store sales, Jared was adversely affected by the general weakness in expenditure among households with above average incomes, according to the company.

UK same store sales fell by 4.2 percent, with H.Samuel down 2 percent and Ernest Jones 6.7 percent.

"[We] have made significant progress towards achieving our financial objectives for fiscal 2010,"said Chief Executive Terry Burman. "The retail environment remains very uncertain therefore we will continue to execute our strategy of enhancing Signet’s position as the strongest middle market specialty jeweler, strengthening our balance sheet by maximizing profits and cash flow, and reducing business risk.”