Financial Reporting

Same-store holiday sales climb 9% for Sterling

Jan 11, 2012

Akron, Ohio--Signet Jewelers Ltd. executives said Tuesday they were “very pleased” with the company’s holiday performance with its U.S. division, Sterling Jewelers Inc., reporting a 9 percent increase in both same-store and total sales for November and December.

The 9 percent rise comes on the heels of an 11 percent same-store sales increase last holiday season.

Same-store sales were up 10 percent at Kay Jewelers, compared to 11 percent last year, 10 percent at Jared the Galleria of Jewelry, compared to 19 percent last year, and 3 percent at the company’s regional brands, as compared to 1 percent last year.

Internet sales made via redesigned Kay and Jared websites climbed 44 percent during the holiday season.

For the 48-week period ended Dec. 31, U.S. same-store sales increased 12 percent and total sales rose 11 percent.

As a whole, Signet, which also operates jewelry stores in the United Kingdom, experienced an 8 percent increase in same-store sales for the nine-week period ended Dec. 31. Total sales were also up 8 percent.

For the 48 weeks ended Dec. 31, comps climbed 9 percent while total sales were up 10 percent.

The company’s U.K. division experienced a 2 percent increase in same-store sales while total sales were up 0.9 percent in November and December. For the 48-week period ended Dec. 31, same-store sales were up 0.8 percent and total sales increased 4 percent.

“We are pleased with our holiday season performance,” Signet CEO Mike Barnes said. “Our performance is built on the long-term competitive strengths of the business, including the great customer experience which our teams deliver, the strength of our merchandise, our continued investment in advertising to support our store concepts and merchandising initiatives, and our U.S. customer finance programs, which are highly effective in supporting our customers’ jewelry purchases.

“We believe that Signet is well positioned for fiscal 2013.”

In a conference call held Tuesday morning, Signet executives said that the level of discounting employed by the chain in the United States was similar to last year, while advertising impressions were up in the mid single-digit levels for both Kay and Jared.

Barnes said the company increased the number of television ads, specifically, for Kay and Jared during the holiday season, which he called “very effective.”

While executives declined to comment on the performance of specific brands, Barnes said both bridal and fashion jewelry were strong performers, as were charms.

“The charms altogether did very well for us again, especially the ‘Charmed Memories,’” Signet Chief Financial Officer Ron Ristau said. “Pandora did well also. We were very pleased with the business we saw in there.”

Signet executives said the company did not experience a dropoff in sales between November and December, as reported Tuesday by competitor Zale Corp., nor did it experience a weak holiday season, as noted by Tiffany & Co.

“That was not our experience,” Ristau said, when asked to compare November and December comps. He said comps from both months were “broadly similar,” and that the company does not anticipate a weakening of business heading into Valentine’s Day.

“We believe we are well positioned for Valentine’s Day,” he said.

Sterling Jewelers ranks No. 2 on National Jeweler’s list of $100 Million Supersellers.

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