Jewelry retailer Signet Group total sales rise 8.1% in Q1
09 Jun '07
3 min read
Operating profit was $59.9 million (13 weeks to 29 April 2006: $62.7 million). The results were adversely impacted by net expense timing differences in respect of marketing events, which are estimated to have reduced operating profit by about $5 million.
As anticipated,gross margin was lower due to commodity cost increases and changes in sales mix. The mix changes reflected factors, including the growth of Jared, which again enhanced like for like sales performance. The operating margin was 9.5% (Q1 2006/07: 10.9%).
The bad debt ratio was comfortably within the tight range of the last ten years.
United Kingdom (circa 25% of Group annual sales)Total sales were up by 1.7% at constant exchange rates (see note 10); the reported increase was 14.0% to $182.1 million (13 weeks to 29 April 2006: $159.8 million). Like for like sales rose by 2.6%, with H.Samuel up by 1.9% and Ernest Jones by 3.5%.
The normal seasonality in trading was reflected in an operating loss of $1.9 million (13 weeks to 29 April 2006: loss $2.8 million). As expected, gross margin was little changed. Group Costs, Financing Costs and Net Debt Group costs were $4.0 million (13 weeks to 29 April 2006: $3.6 million).
Primarily as a result of the $100 million share buy back programme, which was substantially completed during the period, financing costs rose to $3.2 million (13 weeks to 29 April 2006: $2.6 million) and net debt, at 5 May 2007, to $286.2 million (29 April 2006: $169.5 million).
Terry Burman, Group Chief Executive, commented: “In the first quarter the US trading environment weakened and the UK marketplace was a little stronger. Against this background, profit before tax of $50.8 million demonstrates the underlying strength of the Group."
marketing@alchempro.com
