Press Releases

Signet Full Year Results Exceed Expectations

25 Mar 2010

Click here to download the press release (134KB PDF)
Click here to view the Release in HTML format
Click here to listen to the Conference Call
Click here to download the slides for the conference call (122KB PDF)

HAMILTON, Bermuda, March 25, 2010 – Signet Jewelers Ltd (“Signet”) (NYSE and LSE: SIG), the world’s largest specialty retail jeweler, today announced its results for the 13 weeks (“fourth quarter”) and for the 52 weeks (“fiscal 2010”) ended January 30, 2010.

Fiscal 2010 results:

• Same store sales down 0.4%
• Income before income taxes of $241.8 million
• Basic earnings per share $1.92, above guidance provided in January 2010 of $1.76 to $1.84
• Year end net debt⁽¹⁾ of $7.9 million

Performance against original fiscal 2010 financial objectives⁽²⁾:

• Positive free cash flow⁽¹⁾ of $471.9 million against target of $175 million to $225 million
• Significantly exceeded working capital reduction objectives
• Slightly exceeded $100 million cost saving program

Financial objectives for fiscal 2011:

• Positive free cash flow⁽¹⁾ of between $150 million and $200 million
• Controllable costs⁽³⁾ little changed from fiscal 2010 at constant exchange rates
• Capital expenditure of about $80 million

(1) Non-GAAP measure, see Note 14 of full release.
(2) As set out in announcement of March 25, 2009.
(3) Controllable costs exclude net bad debt charge, expenses that vary with sales, the US vacation entitlement policy change and the impact from amendments to the Truth in Lending Act.

Terry Burman, Chief Executive, commented: “We are pleased with our fiscal 2010 results, which were ahead of our January guidance and substantially exceeded our objectives set at the start of the year.

Significant store capacity left the US specialty jewelry marketplace in calendar 2009 and we believe that many of the remaining firms are less able to compete due to financial pressures.  Improving store productivity through expanding our competitive advantages in the basic retail disciplines of store operations, supply chain management, marketing and quality of real estate, remains our primary focus on both sides of the Atlantic, and supports our strategy to gain profitable market share and maintain a strong balance sheet.

We believe that our strategy remains especially appropriate in the current uncertain economic environment.  Solid execution of this strategy should help us achieve a further profitable market share increase, which would build on our ten year record that has seen our US market share almost double to 9.4% in fiscal 2010.

We have had an encouraging start to fiscal 2011, with same store sales in the first seven weeks up 6.4%, with the US increasing by 7.8% and the UK down by 0.1%.”
 
RESULTS CONFERENCE CALL DETAILS

There will be a conference call today at 8.30 a.m. EDT (12.30 p.m. GMT and 5.30 a.m. Pacific Time) and a simultaneous audio webcast and slide presentation available at www.signetjewelers.com.  The slides are available to be downloaded from the website ahead of the conference call.  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:

Signet operated 1,913 specialty retail jewelry stores at January 30, 2010; these included 1,361 stores in the US, where the Group trades as “Kay Jewelers”, “Jared The Galleria Of Jewelry”, and under a number of regional names.  At that date Signet operated 552 stores in the UK, where the Group trades as “H.Samuel”, “Ernest Jones”, and “Leslie Davis”.  Further information on Signet is available at www.signetjewelers.com.  See also www.kay.com, www.jared.com, www.hsamuel.co.uk and www.ernestjones.co.uk.

IR Program details

Citi Reverse Road Show, London, on Monday, March 29, 2010
Signet will be taking part in the Citi Reverse Road Show on Monday, March 29, 2010 in London.  Present will be Walker Boyd, Finance Director and Tim Jackson, Investor Relations Director.

Goldman Sachs Field Trip, London, on Tuesday, April 13, 2010
Signet will be taking part in the Goldman Sachs Field Trip, on Tuesday April 13, 2010 in London.  Present will be Rob Anderson, Chief Executive Signet UK and Tim Jackson, Investor Relations Director.

TAG Conference, New York, on Wednesday, April 14, 2010
Signet will be taking part in the TAG Conference, New York, on Wednesday, April 14, 2010 in New York.  Present will be Terry Burman, Chief Executive and Walker Boyd, Finance Director.

Investor Day and Store Tour, Akron, Ohio, on Tuesday, June 15 2010
It is intended to hold an Investor Day and Store Tour for professional investors in Akron, Ohio on Tuesday, June 15, 2010.

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 Signet operates.  Our use of the words 'expects,' 'intends,' 'anticipates,' 'estimates,' ‘predicts,’ ‘believes,’ ‘should,’ ’potential,’ '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 Signet, the reputation of the Company and its brands, the level of competition in the jewelry sector, the cost and availability of diamonds, gold and other precious metals, regulations relating to consumer credit, seasonality of Signet’s business, and financial market risks.

For a discussion of these and other risks and uncertainties which could cause actual results to differ materially, see the “Risk Factors” section of the Company’s fiscal 2009 annual report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 1, 2009 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 realized.  The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

25 Mar 2010 Signet Full Year Results Exceed Expectations (134KB PDF)

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