LONDON (Alliance News) - Signet Jewelers Ltd Thursday said its earnings have risen since the start of 2015 as total and like-for-like sales increased thanks to the Zale acquisition but the company's UK division saw sales decline.
The diamond jewellery retailer said its earnings per share in the 13 weeks ended May 2, 2015 rose by USD0.06 pence to USD1.48 per share whilst its earnings per share before exceptional items came in at USD1.62 compared to USD1.29 per share a year earlier.
In the period, the company generated USD1.53 billion in revenue, which was significantly up from USD1.50 billion a year earlier, driven by the addition of the Zale division which added USD437.1 million toward the sales. Same store sales increased 3.6% compared to an increase of 3.3% a year earlier.
The increase in same store sales as well as total sales at constant exchange rates was driven primarily by branded bridal as well as fashion diamond jewellery and fashion watches.
eCommerce sales also rose to USD76.9 million from USD38.7 million, also driven by the Zale division which contributed USD28.6 million to e-Commerce sales in the period.
Sterling Jewellers division sales increases were driven primarily by Kay and by select diamond jewellery collections; as well as watches. The average transaction price in Sterling increased by 4.7% and the number of transactions decreased by 3.0% due principally to merchandise mix, including bridal and higher price point fashion collections.
Zale division sales were driven primarily by sales associate training, new marketing creative, and branded bridal and branded diamond fashion merchandise. UK Jewellery division sales decreases were driven entirely by the un-favourable impact of foreign currency exchange, it said.
At May 2, Signet reported a cash balance of USD122.6 million, which has fallen from a year earlier due to unfavourable changes to working capital, higher capital spending, higher dividends and share repurchases, and the financing of the Zale acquisition, it said.
Signet shares were down 2.4% to 8,555.00 pence per share on Thursday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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