Christmas Trading Statement
08 Januar 2004 - 1:30PM
UK Regulatory
RNS Number:9831T
Signet Group PLC
08 January 2004
Signet Group plc
(LSE: SIG and Nasdaq NMS: SIGY)
Christmas Trading Statement
Embargoed until 12.30 p.m. (GMT) 8 January 2004
CHRISTMAS LIKE FOR LIKE SALES UP 6.5%
PROFITS ANTICIPATED TO MEET ANALYSTS' EXPECTATIONS
Like for like sales 8 weeks to 24 December 2003
Group up 6.5%
US up 6.4%
UK up 6.7%
Like for like sales 48 weeks to 3 January 2004
Group up 4.7%
US up 4.4%
UK up 5.5%
COMMENT
Terry Burman, Group Chief Executive, commented: "We are very pleased with our
strong performance over the Christmas period in both the US and the UK. Profit
before tax for 2003/04 is anticipated to be ahead of last year and to meet
analysts' expectations notwithstanding the recent sharp fall in the US Dollar
exchange rate.
Our US business continued to implement its successful long term growth strategy
with total dollar sales over the Christmas period up by 10.4%. Like for like
sales rose by 6.4% over the same period versus challenging comparatives. Last
Christmas we outperformed our main competition with a like for like sales
increase of 4.7%.
UK like for like sales increased by 6.7% in the eight week Christmas period.
Ernest Jones had an excellent performance building further on its impressive
growth record of the last five years with like for like sales up by 10.3%. The
UK division did not participate in the discounting that was prevalent in the
retail market in the run up to Christmas and the gross margin should be somewhat
ahead of last year."
Enquiries:
Terry Burman, Group and US Chief Executive +44 (0) 20 7399 9520
Walker Boyd, Group Finance Director +44 (0) 20 7399 9520
Mike Smith, Brunswick +44 (0) 20 7404 5959
Anna Jones, Brunswick +44 (0) 20 7404 5959
Signet operated 1,708 speciality retail jewellery stores at 3 January 2004;
these included 1,103 stores in the US, where the Group trades as "Kay Jewelers",
"Jared The Galleria Of Jewelry" and under a number of regional names. At the
same date Signet also operated 605 stores in the UK, where the Group trades as
"H.Samuel", "Ernest Jones" and "Leslie Davis". Further information on Signet is
available at www.signetgroupplc.com.
GROUP
Like for like sales increased by 6.5% in the eight week period to 24 December
2003, building further on the Group's well established growth record. In the
same period total sales were up by 9.2% at constant exchange rates and by 3.0%
on a reported basis (Note 1).
In the 48 weeks to 3 January 2004 like for like sales rose by 4.7%. Total sales
increased by 7.1% at constant exchange rates and by 0.7% on a reported basis
(Note 1).
Group profit before tax for the 52 weeks ending 31 January 2004 is anticipated
to be ahead of last year and to meet analysts' expectations notwithstanding the
recent sharp fall in the US Dollar exchange rate. The average US Dollar exchange
rate, which impacts on the translation of US operating profit and the Group
interest charge, will have weakened in the year by some 10% to c. $1.68 / #.
The full year should again show better than expected cash flow further enhancing
the Group's strong balance sheet.
United States (circa 69% of Group annual sales)
In the eight week period to 24 December 2003 US like for like sales increased by
6.4%, despite facing challenging comparatives. Total sales at constant exchange
rates rose by 10.4% and by 1.4% on a reported basis (Note 1). The mall stores
and Jared both performed well.
In an improving retail environment, the business continued to benefit from its
competitive strengths in merchandising, store operations and marketing. As
anticipated, the gross margin should ease as a result of the increase in the
gold price and changes in the merchandising mix. The credit portfolio continued
to perform well in the eight week period with the expected bad debt percentage
being comparable to that of last year.
In the 48 weeks to 3 January 2004 like for like sales increased by 4.4%, with
total sales up by 7.8% at constant exchange rates and down by 1.3% on a reported
basis (Note 1).
United Kingdom (circa 31% of Group annual sales)
In the eight week period to 24 December 2003, against the background of a
generally challenging retail environment, UK like for like sales rose by 6.7%
with December being the stronger month. Total sales increased by 6.6%. Ernest
Jones performed particularly well and again outperformed its main competition.
The results from the new store formats, designed to allow greater customer
interaction, were again encouraging and the drive to increase the participation
of diamonds in the sales mix continued to show success. Gross margin is expected
to be somewhat ahead of last year.
In the 48 weeks to 3 January 2004 like for like sales increased by 5.5% and
total sales by 5.6%.
The breakdown of UK like for like sales performance is shown below:
Period Ernest Jones H.Samuel UK
(c. 13% of Group) (c. 18% of Group) (c. 31% of Group)
8 weeks to 24 Dec.
2003 +10.3% +4.3% +6.7%
------------------------- -------- ------- -------
48 weeks to 3 Jan.
2004 +8.3% +3.6% +5.5%
------------------------- ------- ------- -------
There will be a conference call for all interested parties today at 2.00 p.m.
GMT (9.00 a.m. EST and 6.00 a.m. Pacific Time) and a simultaneous audio webcast
at www.signetgroupplc.com. To help ensure the conference call begins in a timely
manner, could all participants please dial in 5 to 10 minutes prior to the
scheduled start time. The call details are:
UK dial-in: +44 (0) 207 019 9504 Pass code: 467522
US dial-in: +1 718 354 1152 Pass code: 467522
UK 48hr. replay: +44 (0) 207 784 1024 Pass code: 467522
US 48hr. replay: +1 718 354 1112 Pass code: 467522
Signet will be presenting at the SG Cowen Consumer Conference in New York on
Tuesday 13 January 2004 and at the Dresdner Kleinwort Wasserstein Conference in
London on Thursday 29 January 2004. Fourth quarter sales figures are expected to
be announced on 5 February 2004.
Note 1 - Impact of constant exchange rates
The Group has historically used constant exchange rates to compare
period-to-period changes in certain financial data. This is referred to as 'at
constant exchange rates' throughout this release. The Group considers this to be
a useful measure for analysing and explaining changes and trends in the Group's
results. The impact of the re-calculation of sales growth at constant exchange
rates is shown below.
8 weeks to 24 December 2003 Growth at Impact of Growth at
actual exchange exchange rate constant
rates movement exchange rates
(non-GAAP)
------------------------------- -------- -------- --------
% % %
------------------------------- -------- -------- --------
Sales by origin and destination
UK, Channel
Islands &
Republic of
Ireland 6.6% - % 6.6%
US 1.4% 9.0% 10.4%
------------------------------- -------- -------- --------
3.0% 6.2% 9.2%
------------------------------- -------- -------- --------
48 weeks to 3 January 2004 Growth at Impact of Growth at
actual exchange exchange rate constant
rates movement exchange rates
(non-GAAP)
------------------------------- -------- -------- --------
% % %
------------------------------- -------- -------- --------
Sales by origin and destination
UK, Channel
Islands &
Republic of
Ireland 5.6% - % 5.6%
US (1.3)% 9.1% 7.8%
------------------------------- -------- -------- --------
0.7% 6.4% 7.1%
------------------------------- -------- -------- --------
This release includes statements which are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements, based upon management's beliefs as well as on assumptions made by
and data currently available to management, appear in a number of places
throughout this release and include statements regarding, among other things,
our results of operation, financial condition, liquidity, prospects, growth,
strategies and the industry in which the Group operates. Our use of the words
"expects," "intends," "anticipates," "estimates," "may," "forecast,"
"objective," "plan" or "target," and other similar expressions are intended to
identify forward-looking statements. These forward-looking statements are not
guarantees of future performance and are subject to a number of risks and
uncertainties, including but not limited to general economic conditions, the
merchandising, pricing and inventory policies followed by the Group, the
reputation of the Group, the level of competition in the jewellery sector, the
price and availability of diamonds, gold and other precious metals, seasonality
of the Group's business and financial market risk.
For a discussion of these and other risks and uncertainties which could cause
actual results to differ materially, see the "Risk and Other Factors" section of
the Company's 2002/03 Annual Report on Form 20-F filed with the U.S. Securities
and Exchange Commission on April 24, 2003 and other filings made by the Company
with the Commission. Actual results may differ materially from those anticipated
in such forward-looking statements even if experience or future changes make it
clear that any projected results expressed or implied therein may not be
realised. The Company undertakes no obligation to update or revise any
forward-looking statements to reflect subsequent events or circumstances.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTSSUFAWSLSEDF