Signet reports year end results

Signet Group plc, the world’s largest speciality retail jeweler, which operates leading operations in both the US and UK, provides 2007 year end results.

Terry Burman, Group Chief Executive, said that 2007/08 was a very demanding year for the Group, with a particularly difficult fourth quarter. While the US business saw an unprecedented weakening in sales over Christmas, and faced the impact of commodity cost increases, it continued to be a leader in setting industry operating standards. In a tough UK retail marketplace, like for like sales were ahead and operating margins, cash flow and return on capital remained strong.

In consideration of the uncertain economic environment, actions have been identified to drive sales, protect gross margin, and tightly control costs. The Group’s demanding investment hurdle rate continues to be applied, and as a result US net store space growth is expected to be lower at about 5% in 2008/09.

Since the start of 2008/09, the Group has experienced a low single digit decline in like for like sales, with the US down about 4%, having had some benefit from better weather over Valentine’s Day. Early results have been encouraging from the price increases implemented after Valentine’s Day in the US. UK like for like sales were up mid single digits. However, the outlook remains very challenging on both sides of the Atlantic.

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