RESULTS: Jeweller Signet (SIG) has delivered sparkling full-year results, thanks to its US chains Kay and Jared which offset lacklustre performance in the UK. Branded merchandise, coloured diamonds and bridal were popular with shoppers, pushing same store sales across the pond up 4 per cent to $3.23bn. A favourable sales mix helped operating income rise 15 per cent to $548m.
Online sales rocketed during the year. In the US internet sales were up 48 per cent to $101m and grew 19 per cent to $28.4m in the UK, leading to a 41 per cent rise across the group to $130m.
Elsewhere in the UK, performance floundered as cash-strapped customers increasingly bought promotional merchandise. Same stores sales rose 0.3 per cent, but total sales fell 0.8 per cent to $710m, with lower traffic particularly in the fourth quarter. Operating income slipped 29 per cent to $40m, and margins fell 220 basis points to 5.6 per cent. This year, 25 stores are expected to close, while a 10 per cent operating margin target will take longer to achieve than planned.
Yet, group operating income still grew 11 per cent to $561m. Cash generation was strong too - despite a share buyback representing 7.4 per cent of total stock and a $57m acquisition of US jewellery retailer Ultra. Signet has $50.1m earmarked for further share buybacks this year.
| SIGNET JEWELERS (SIG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 4,478p | MARKET VALUE: | £3.64bn | |
| TOUCH: | 4,475-4,480p | 12-MONTH HIGH: | 4,569p | LOW: 2,614p |
| DIVIDEND YIELD: | 1% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 2,866¢ | NET CASH: | $301m | |
| Year to 2 Feb | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2009 | 3.34 | -327 | -462 | 145 |
| 2010 | 3.27 | 230 | 184 | nil |
| 2011 | 3.44 | 300 | 234 | nil |
| 2012 | 3.75 | 502 | 376 | 20.0 |
| 2013* | 3.98 | 557 | 437 | 48.0 |
| % change | +6 | +11 | +16 | +140 |
Ex-div: 1 May Payment: 29 May *53-week reporting period £=$1.52 | ||||
