LONDON (Alliance News) - Signet Jewelers Ltd Thursday reported a rise in sales in the second quarter of its financial year, beating its guidance, as its gross margin improved and it said that the integration of Zale Corp is going well.
Signet, which owns jewellery stores H. Samuel and Ernest Jones, said that revenue in the 13 weeks ended August 1 grew to USD1.41 billion from USD1.23 billion in the same period the year before, as same store sales grew 4.2%, which it said beat its guidance for the quarter. Signet said that it achieved "strong and consistent" sales growth across all of its selling channels, as well as "solid profitability and disciplined cost management" across the business.
Signet added that its gross margin improved to 34.8% from 33.4% the prior year due to higher sales and favourable commodity costs.
The company will pay a quarterly dividend of USD0.22.
"The integration of Zale continues to go well, and we have begun to see the benefit of net synergies positively impact our operating results. I am increasingly confident that we are on track in financial year 2016 to realise 20% of our three-year net synergy target of USD150 million to USD175 million. We remain committed to maintaining profitable growth while balancing investment back into the business with shareholder distribution," Chief Executive Mark Light said in a statement.
Shares in Signet were trading up 6.3% at 8,100.00 pence Thursday afternoon.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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