Signet Jewelers (SIG) Reports 5.6% Increase in SSS for Holiday 2009
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Price: $90.57 -2.15%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 1.1%
Revenue Growth %: -0.6%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 1.1%
Revenue Growth %: -0.6%
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Signet Jewelers Ltd (NYSE: SIG), the world's largest specialty retail jeweler, today announced its Holiday Sales and Fiscal 2010 (year ended January 30, 2010) Results Expectations.
Terry Burman, Chief Executive, commented: "Reflecting a same store sales performance up 5.6% over the Holiday Season, income before income tax for fiscal 2010 is expected to be between $222.5 million and $232.5 million, with earnings per share anticipated to be between $1.76 and $1.84. For the year as whole we expect to have outperformed our financial targets set out in March 2009 and, in particular, to have very significantly exceeded our free cash flow objective. We believe our long term strategy of focusing on sustainable competitive advantages in the basic retail disciplines has once again proven to be successful.
The US division performed well, with same store sales up 7.6% over the Holiday Season. Sales benefitted from the growth of differentiated ranges, a strong value proposition in generic merchandise, national television advertising and superior customer service.
The UK division reported a 0.8% same store sales decline. The charm bracelet category performed well in H.Samuel, as did diamonds. The charm bracelet category was also strong in Ernest Jones, as were prestige watches. A further improvement in customer service was achieved due to a focus on staff training throughout the year.
In the forthcoming fiscal year, Signet will continue to seek to optimize sales by implementing additional differentiated product initiatives, improved customer service and best in class marketing that leverages our leading share of voice. However, against a background of an uncertain economic outlook, the prime focus of management will remain on excellence in execution, and maximizing both profitability and free cash flow. While we anticipate that net cash generation will remain strong, it is expected to be substantially lower than in fiscal 2010 because of limited scope for a further reduction in working capital.
Our strong balance sheet, superior operating metrics and sector leading execution remain critical competitive advantages, which mean that we are well placed to face the challenges of fiscal 2011."
Terry Burman, Chief Executive, commented: "Reflecting a same store sales performance up 5.6% over the Holiday Season, income before income tax for fiscal 2010 is expected to be between $222.5 million and $232.5 million, with earnings per share anticipated to be between $1.76 and $1.84. For the year as whole we expect to have outperformed our financial targets set out in March 2009 and, in particular, to have very significantly exceeded our free cash flow objective. We believe our long term strategy of focusing on sustainable competitive advantages in the basic retail disciplines has once again proven to be successful.
The US division performed well, with same store sales up 7.6% over the Holiday Season. Sales benefitted from the growth of differentiated ranges, a strong value proposition in generic merchandise, national television advertising and superior customer service.
The UK division reported a 0.8% same store sales decline. The charm bracelet category performed well in H.Samuel, as did diamonds. The charm bracelet category was also strong in Ernest Jones, as were prestige watches. A further improvement in customer service was achieved due to a focus on staff training throughout the year.
In the forthcoming fiscal year, Signet will continue to seek to optimize sales by implementing additional differentiated product initiatives, improved customer service and best in class marketing that leverages our leading share of voice. However, against a background of an uncertain economic outlook, the prime focus of management will remain on excellence in execution, and maximizing both profitability and free cash flow. While we anticipate that net cash generation will remain strong, it is expected to be substantially lower than in fiscal 2010 because of limited scope for a further reduction in working capital.
Our strong balance sheet, superior operating metrics and sector leading execution remain critical competitive advantages, which mean that we are well placed to face the challenges of fiscal 2011."
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