LONDON (Alliance News) - Signet Jewelers Ltd on Thursday reported higher sales over the crucial holiday season, and lifted the lower end of its fourth-quarter financial guidance for same store sales and earnings per share.
Signet, which owns jewellery stores in the US, UK and Canada, primarily operating in the mid-market, said total sales increased by 5.0% to USD1.95 billion in the eight weeks ended December 26, versus the corresponding period the prior year. Total sales at constant exchange rates increased 6.3% compared to prior year.
Same store sales increased 4.9% compared to an increase of 3.6% in the prior year, driven primarily by mall-based and outlet concepts in the US as well as upper-middle market jeweller Ernest Jones stores in the UK.
The jeweller issued an update to financial guidance for the fourth quarter. It now expects same store sales to range between 4.6% and 5.0% in the fourth quarter, versus previous guidance of 3.5% to 5.0%. It sees earnings per share coming in at USD3.44 to USD3.50, versus previous guidance of USD3.30 to USD3.50.
"Signet delivered excellent holiday sales as a result of the successful execution of our product, marketing, and omni-channel selling strategies, as well as our superior customer experience. These results were driven by broad-based success across strategic store brands, merchandise categories and selling channels.
"The implementation of store operations initiatives in the third quarter combined with investment in our recently launched innovative merchandising and marketing programs positioned Signet well for a strong fourth quarter and beyond," Chief Executive Mark Light said.
"The continuation of strong sales and profitability combined with operating expenses that were in-line with expectations, including as-anticipated credit-related expense trends, enabled us to narrow our fourth quarter earnings guidance as well as our same store sales guidance to the top end of the previously provided guidance," Light said.
Shares in Signet were down 1.4% at 8,586.00 pence on Thursday shortly after midday in London.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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