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| Kay Jewelers is a top performer for Signet. |
Signet Jewelers Ltd., the world’s largest specialty retailer of fine jewelry, said Tuesday that third quarter sales increased 10.7 percent, year-over-year, to $710.5 million, led by a 10.6 percent increase in same store sales. Income before taxes for the period, ended October 29, was $42.1 million, up from $12 million for the third quarter of the prior year.
“Our sustained positive performance is due to the excellent execution of our strategies by our team,’ said Mike Barnes, CEO of the Bermuda-based company, which is listed on the NYST. “We are pleased with the start of the fourth quarter, and with the majority of our sales ahead of us.”
The company, which operates approximately 1,860 retail jewelry stores in the U.S. and U.K., was led by the strength of U.S. operations, while its U.K. business sales were slightly down or flat, year-over-year.
The company’s U.S. division, which consists of about 1,324 stores and accounts for about 80 of annual sales, reported a 13.3 percent increase in sales for the quarter to $563 million. Same store sales increased by 13.9 percent compared to a rise of 9.7 percent for the same period of the prior year.
Its Kay brand reported a 13.8 percent increase in sales for the period to $314.3 million while same store sales rose by 13 percent.
Its higher end Jared brand reported an 18.4 increase in sales to $194.6 million with an 18.3 percent increase in same store sales. Jared average unit selling price and same store sales were favorably impacted by approximately $76 and 8.3 percent, respectively, as a result of a one-time watch promotion.
The company also operates several regional brands in the U.S., which in total reported a loss of 3.9 percent to $54.1 million. Same store sales increased 4.3 percent for the period.
Signet’s U.K. division, which consists of about 536 stores and accounts for about 20 percent of annual sales, reported a 1.9 percent increase in sales to $147.5 million. At constant exchange rates, sales were down 1.2 percent. Same store sales were down 0.5 percent, compared to a decline of 0.6 percent in the third quarter of Fiscal 2011.
Its H.Samuel brand reported a 3 percent increase in sales (0.2 percent at constant exchange rates) to 78.3 million for the period. Same store sales were flat.
Its Ernest Jones brand reported a loss of 0.6 percent (down 2.4 percent at constant exchange rates) to $69.2 million. Same store sales were down 1.1 percent for the period.