Signet reports 1Q results

Signet Group plc, the world’s largest speciality retail jeweller, announces its first quarter results for the 13 weeks from 3 February to 3 May 2008.

Total sales rose by 1.0% to $822.5 million (13 weeks to 5 May 2007: $814.4 million). Like for like sales decreased by 2.5%. Group profit before tax was down by 24.0% to $38.6 million (13 weeks to 5 May 2007: $50.8 million) and operating profit fell 18.9% to $43.8 million (13 weeks to 5 May 2007: $54.0 million). Operating margin was 5.3% (13 weeks to 5 May 2007: 6.6%). The average US dollar rate was £1/$1.98 (13 weeks to 5 May 2007: £1/$1.96).

The tax rate was 36.0% (13 weeks to 5 May 2007: 36.0%). Basic earnings per share were 1.4 cents (13 weeks to 5 May 2007: 1.9 cents), equivalent to 14.4 cents per American Depositary Share (13 weeks to 5 May 2007: 19.1 cents).

Terry Burman, Group Chief Executive, said, the US performance reflected a continuing difficult trading environment with the decline in like for like sales resulting in a lower operating margin despite a tight control of costs. The results of the price increases implemented in the US in February and March remain encouraging, although a full evaluation will only be completed during the summer.

In a demanding marketplace the UK division had a good performance, with the 5.3% like for like sales increase and a little changed cost base resulting in an operating profit of $2.7 million compared to a loss of $1.9 million in the first quarter last year. Given the increasing pressure on consumer expenditure in the UK and demanding second quarter comparatives, like for like growth is not expected to continue at this level.

Source : http://www.signetgroupplc.com/

Story link: Signet reports 1Q results