Save E-mail

Send this URL to a friend:

* - Denotes a required field.
Your Name*
Your Email Address*
Friend's Name*
Friend's Email Address*
Subject*
Message*

Print

Hamilton, Bermuda--Signet Jewelers reported Tuesday that same-store sales in its U.S. division rose 14 percent in the third quarter, with its differentiated brands driving sales.

Signet is the parent company of Akron, Ohio-based Sterling Jewelers, operator of Kay Jewelers, Jared the Galleria of Jewelry and a number of regional chain stores.

In the third quarter ended Oct. 30, Sterling’s sales totaled $563.0 million, up 13 percent from the third quarter of last year. This included 14 and 18 percent increases at Kay Jewelers and Jared, respectively, and a 4 percent decline in sales at regional chains.

Net operating income increased from $25.7 million to $56.4 million.

Both total and same-store sales for Signet, which also operates the Ernest Jones and H. Samuel chains in the United Kingdom, were up 11 percent to $710.5 million, with U.K same-store sales slipping 0.5 percent.

Gross margin increased from 30 percent to 32 percent and net income soared, from $6.0 million to $26.1 million.

“Our sustained positive performance is due to the excellent execution of our strategies by our team, and I would like to thank everyone at Signet who contributed to these results,” Signet CEO Mike Barnes said. “We are pleased with the start of the fourth quarter, and with the majority of our sales ahead of us, believe the superior quality of our in-store experience, our well-tested merchandising programs, and the exciting new advertising support, have us well-positioned for the remainder of the holiday season.”
 
Year-to-date, Sterling’s comps are up 13 percent while Signet’s same-store sales in the United Kingdom have declined 0.4 percent. Signet’s total sales are up 11 percent to $2.40 billion, with same-store sales up 10 percent.

Net income has increased 77 percent, from $95.0 million to $167.8 million. Gross margin has improved from 33 percent to 37 percent.

As of the end of the third quarter, Sterling operated a total of 1,324 stores: 783 Kay mall stores, 137 Kay off-mall stores, 223 regional chain stores and 181 Jared stores. That number is set to decline to 1,305 stores by Jan. 28, comprised of: 781 Kay mall stores; 134 Kay off-mall stores, 207 regional chain stores and 183 Jared stores.

Sterling Jewelers Inc. ranks No. 3 on National Jeweler’s 2011 list of $100 Million Supersellers.