Jewellery group Signet (SIG) may have reported a 4.9 per cent rise in second-quarter like-for-like sales at its US business, but that's still rather weaker than the 8.1 per cent growth seen in the same period last year. Accordingly, the shares dipped 4 per cent on the back of these half-year figures.
Like-for-like sales growth eased across the group during the first half, too, slowing to 3.6 per cent in the second quarter, from 6.4 per cent in the first. Growth came from Signet's US businesses, Kay and Jared, where higher transaction volumes and growth in coloured diamonds and watches helped first-half sales rise 10 per cent year on year to $1.6bn (£1.04bn). Half-year US operating profit rose 3.6 per cent to $264.3m, impacted slightly by the newly acquired lower-margin Ultra business. However, trading here is expected to improve as the stores are converted into more productive Kay outlets.
Meanwhile, the UK businesses - H Samuel and Ernest Jones - continued to struggle. Sales there fell 8.8 per cent to £274m, partly driven by store closures, and generated just 15 per cent of group turnover. As a result, the UK loss worsened to $4.9m from $3.3m.
Analysts' consensus estimates stand at full-year pre-tax profit of $600m, giving EPS of 483¢ (from $557m and 437¢ in 2012).
| SIGNET (SIG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 4,290p | MARKET VALUE: | £3.47bn | |
| TOUCH: | 4,284p-4,290p | 12-MONTH HIGH: | 4,985p | LOW: 2,837p |
| DIVIDEND YIELD: | 0.8% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 2,933¢ | NET CASH: | $211m | |
| Half-year to 3 Aug | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 | 1.75 | 239 | 182 | 24.0 |
| 2013 | 1.87 | 246 | 198 | 30.0* |
| % change | +7 | +3 | +9 | +25 |
*Second-quarter dividend paid on 28 August £1=$1.54 | ||||
