Signet Second Quarter Same Store Sales Down 5.3%

Signet Jewelers, the world’s largest specialty retail jeweler, has reported total group sales of $710.8 million in the second quarter, a 13 percent decline from the previous fiscal quarter.

Total U.S. sales, which make 80 percent of the group's sales, were down by 4 percent at $552.5 million, while UK sales, 20 percent of total group sales, were down 0.4 percent at constant exchange rates, and by 18.1 percent, on a reported basis were sales were reported to total $158.3 million.

In total, during the first half of the fiscal year, group revenues declined 7.6 percent to $1.47 billion.

In the U.S., same store sales were down 5.5 percent in the second quarter and in the U.K., 4.3 percent.

During the quarter, American operating income was little changed at $50.4 million compared to the previous year, mall brands same store sales were broadly flat, however Jared stores continued to be adversely affected by the general weakness in expenditure among households with above average incomes.

In the U.K., operating income was $1 million during the past quarter, ending August 1. Same store sales were down by 4.3 percent (H.Samuel -2.5% and Ernest Jones -6.2%), despite the decline, the figures were cited by the company as "an encouraging performance given the trading environment."

Chief Executive Terry Burman explained that "In the current environment, the ability to generate profits and cash, maintain superior operating metrics, have a strong balance sheet and reliable medium term financing in place are significant competitive advantages within the specialty jewelry sector."