Signet Reports Third Quarter Results
SIG | Quote | Chart | News | PowerRating -- Signet Jewelers Ltd ("Signet") (NYSE and LSE: SIG), the world's largest
specialty retail jeweler, today announced its unaudited results for the
13 and 39 weeks ended October 31, 2009.
Ended Ended Change
October 31 November 1
2009 2008
-- Same store sales 13 weeks down1.9%
39 weeks down3.4%
-- Underlying operating loss(1) 13 weeks $(8.1)m $(14.2)m n.a.
Underlying operating income(2) 39 weeks $80.9m $79.7m up 1.5%
-- Reported (loss) before taxes 13 weeks $(10.5)m $(23.6)m n.a.
Reported income before taxes 39 weeks $69.4m $47.1m up 47.3%
-- Basic & diluted (loss) per share 13 weeks $(0.08) $(0.18) n.a.
Basic & diluted earnings per share 39 weeks $0.55 $0.35 up 57.1%
-- Free cash inflow(3) target range
increased by further $25 million to between $300 million to $350
million for fiscal 2010(4)
(1) Excluding favorable $5.0 million impact of change in US vacation
policy in fiscal 2010 see note 15.
(2) Excluding favorable $15.0 million impact of change in US vacation
policy in fiscal 2010 and non-recurring relisting costs of $10.5
million in fiscal 2009(4) see note 15.
(3) Cash inflow from operating activities less cash used in investing
activities and amendment fees.
(4) Fiscal 2009 is the year ended January 31, 2009 and fiscal 2010 is
the year ending January 30, 2010.
Terry Burman, Chief Executive, commented: "We have made further good
progress towards achieving our strategic and financial objectives for
fiscal 2010. Results for the quarter were significantly better than last
year reflecting expansion of profitable market share, as well as the
continued tight control of costs and gross merchandise margin. In
addition, we now expect to achieve a reduction in net debt of between
$300 million and $350 million this year compared to our original target
of $175 million to $225 million. We have further reinforced our
operational advantages in customer service, merchandising and marketing,
which means we are well prepared for the challenges of an uncertain
marketplace.
Our positive year to date performance reinforces the strengths of our
business model and brands. However, as always, the results for the year
will depend on the very important Holiday Season, the vast majority of
which is still ahead of us."
Signet operated 1,948 specialty retail jewelry stores at October 31,
2009; these included 1,394 stores in the US, where it trades as "Kay
Jewelers", "Jared The Galleria Of Jewelry" and under a number of
regional names. At that date Signet operated 554 stores in the
UK, where it trades as "H.Samuel", "Ernest Jones" and "Leslie Davis".
Further information on Signet, including documents relevant to this
announcement, is available at www.signetjewelers.com.
See also www.kay.com,
www.jared.com,
www.hsamuel.co.uk
and www.ernestjones.co.uk.
Conference call
A conference call will take place for all interested parties today at
8.30 a.m. EST (1.30 p.m. GMT) with a simultaneous audio webcast and
slide presentation on www.signetjewelers.com.
The slides are available to be downloaded from the website ahead of the
conference call. The call details are:
US dial-in: +1 (718) 354-1385 Access code: 8017450#
US 48hr replay: +1 (347) 366-9565
European dial-in: +44 (0) 20 7806 1951 Access code: 8017450#
European 48hr replay: +44 (0) 20 7111 1244
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,' '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 price and availability of diamonds, gold and
other precious metals, seasonality of Signet's business, the impact of
changes in legislation regarding consumer credit 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.
GROUP
During the third quarter Signet continued to make good progress towards
achieving its strategic and financial objectives for fiscal 2010. These
are:
Strategy
--
Enhance position as strongest middle market specialty retail jeweler
--
Focus on profit and cash flow maximization to further strengthen
balance sheet
--
Reduce business risk
Financial Objectives
--
$100 million US cost reduction program
--
Significant working capital reduction
--
Reduce capital expenditure by about 50%, to some $55 million
--
Revised target of $300 million to $350 million free cash inflow, up
from original target of $175 million to $225 million and revised
target at end of the second quarter of $275 million to $325 million
Progress on fiscal 2010 financial objectives
The expectations for gross merchandise margin, costs and capital
expenditure in both the US and the UK for fiscal 2010 are unchanged from
the end of the second quarter. Gross merchandise margin rate is expected
to be at least at the level of fiscal 2009 in the US, and a little below
last year's level in the UK. The US division is now anticipated to
slightly exceed its cost reduction target of $100 million (excluding
inflation, net bad debt and volume related costs on sales above plan;
that is on an "underlying basis") and full year sterling costs in the UK
are expected to be similar to last year. Capital expenditure in the US
and UK is forecast to be about $40 million and $15 million respectively.
The free cash flow target for fiscal 2010 is now between $300 million
and $350 million compared with the range of $275 million to $325 million
projected at the time of the second quarter fiscal 2010 results
announcement. The increase in targeted free cash flow largely reflects a
further $30 million benefit from inventory management.
13 weeks ended October 31, 2009
In the 13 weeks ended October 31, 2009 same store sales decreased
by 1.9%, with a broadly consistent performance throughout the
period in both markets. Total sales fell by 2.5% to $613.7 million
(13 weeks to November 1, 2008: $629.3 million) reflecting an
underlying decrease of 0.2% at constant exchange rates (see note
13). The components of the change in sales are set out below:
13 weeks ended October31, 2009 change in sales US UK Group
% % %
Same store sales (2.4) (0.2) (1.9)
Change in store space 0.7 4.7 1.7
Change in sales at constant exchange rates (1.7) 4.5 (0.2)
Exchange translation - (9.2) (2.3)
Change in total sales as reported (1.7) (4.7) (2.5)
Operating loss decreased to $3.1 million (13 weeks to November 1,
2008: $14.2 million loss). This included the benefit of $5.0
million from a previously announced change in US vacation policy.
Central costs were $4.3 million (13 weeks to November 1, 2008:
$4.1 million). The factors influencing the movement in operating
margin are set out below:
Change in operating margin US UK Group
% % %
13 weeks ended November1, 2008 operating margin (1.3) (2.4) (2.3)
Gross merchandise margin movement 1.4 (0.1) 1.1
Expense leverage 1.0 0.2 0.7
Impact of new store square footage (0.1) - -
13 weeks ended October31, 2009 operating margin 1.0 (2.3) (0.5)
Net financing costs declined to $7.4 million (13 weeks to November 1,
2008: $9.4 million), the decrease being primarily due to the lower level
of both fixed and variable rate borrowings. Loss before income taxes
decreased to $10.5 million (13 weeks to November 1, 2008: $23.6 million
loss). There was a tax credit of $3.5 million (13 weeks to November 1,
2008: $8.5 million), a rate of 33.3% (13 weeks to November 1, 2008:
36.0%). Net loss was $7.0 million (13 weeks to November 1, 2008: $15.1
million loss). Basic and diluted loss per share were $0.08 (13 weeks to
November 1, 2008: $0.18 loss).
39 weeks ended October 31, 2009
In the 39 weeks ended October 31, 2009 same store sales decreased
by 3.4%. Total sales fell by 6.0% to $2,087.1 million (39 weeks to
November 1, 2008: $2,220.7 million) reflecting an underlying
decrease of 1.6% at constant exchange rates (see note 13). The
average US dollar rate was GBP 1/$1.57 (39 weeks to November 1, 2008:
GBP 1/$1.92). The components of the change in sales are set out below:
39 weeks ended October 31, 2009 change in sales US UK Group
% % %
Same store sales (3.5) (3.0) (3.4)
Change in store space 1.3 3.8 1.8
Change in sales at constant exchange rates (2.2) 0.8 (1.6)
Exchange translation - (18.4) (4.4)
Change in total sales as reported (2.2) (17.6) (6.0)
Operating income increased by 38.6% to $95.9 million (39 weeks to
November 1, 2008: $69.2 million), up by 34.5% at constant exchange
rates (see note 13). This included the benefits of $15.0 million
from a previously announced change in US vacation policy and a
charge in fiscal 2009 of $10.5 million for non-recurring relisting
costs. Central costs were $11.8 million (39 weeks to November 1,
2008: $12.9 million, excluding $10.5 million of relisting costs).
Excluding the impact of the change in vacation policy and the
relisting costs, operating income increased by 1.5%. Operating
margin was 4.6% (39 weeks to November 1, 2008: 3.1%). The factors
influencing the movement are set out below:
Change in operating margin US UK Group
% % %
39 weeks ended November1, 2008 operating margin 5.4 0.3 3.1
Relisting costs - - 0.5
39 weeks ended November1, 2008 before relisting costs 5.4 0.3 3.6
Gross merchandise margin movement 0.8 0.3 0.7
Expense leverage/(deleverage) 0.7 (1.5) 0.3
Impact of new store square footage (0.1) - -
39 weeks ended October31, 2009 operating margin 6.8 (0.9) 4.6
Net financing costs rose to $26.5 million (39 weeks to November 1, 2008:
$22.1 million), including refinancing costs of $4.0 million (39 weeks to
November 1, 2008: nil). Income before income taxes rose by 47.3% to
$69.4 million (39 weeks to November 1, 2008: $47.1 million). The tax
charge was $22.5 million (39 weeks to November 1, 2008: $16.8 million),
a tax rate of 32.4% (39 weeks to November 1, 2008: 35.7%). Net income
increased by 54.8% to $46.9 million (39 weeks to November 1, 2008: $30.3
million). Basic and diluted earnings per share were $0.55 (39 weeks to
November 1, 2008: $0.35).
Net debt and free cash flow
Net debt (see note 14) at October 31, 2009 was $160.7 million (November
1, 2008: $577.8 million), reflecting some benefit from timing
differences in working capital. Group gearing (that is the ratio of net
debt to shareholders' funds excluding goodwill) at October 31, 2009 was
9.5% (November 1, 2008: 36.4%). In the 39 weeks to October 31, 2009,
there was a $310.0 million reduction in net debt rather than the normal
seasonal increase (39 weeks to November 1, 2008: up $203.2 million)
reflecting an inflow from tight management of working capital (operating
assets and liabilities) of $203.9 million (39 weeks to November 1, 2008:
outflow $121.5 million), nil distribution to shareholders (39 weeks to
November 1, 2008: $107.4 million) and increased cash flow from
operations of $145.2 million (39 weeks to November 1, 2008: $120.2
million).
OPERATING REVIEW
US division (about 80% of annual sales)
13 weeks ended October 31, 2009
Total sales were down by 1.7% to $459.3 million (13 weeks to November 1,
2008: $467.3 million). Same store sales decreased by 2.4% in the period
compared to a fall of 5.5% in the second quarter, with Jared showing
some early signs of a slowing sales decline. Reflecting changes in
merchandise mix, the average unit selling price decreased by 3.2% in the
mall brands and by 7.7% in Jared, on an underlying basis excluding the
impact of the introduction of a charm bracelet range.
Operating income of $4.8 million was reported (13 weeks to November 1,
2008: $6.2 million loss) including the benefit of $5.0 million from the
change in vacation policy. Operating margin was 1.0% (13 weeks to
November 1, 2008: -1.3%) reflecting management action to improve gross
merchandise margin and reduce costs (see table above for the main
factors influencing operating margin). Gross merchandise margin was up
140 basis points, benefiting from lower diamond prices, improved repair
margin and favorable changes in sales mix, more than offsetting the
higher cost of gold. The economic environment adversely affected the net
bad debt to total sales ratio which was up by 110 basis points on the
comparable quarter, in line with the trend seen in recent quarters. The
division made further good progress towards achieving its fiscal 2010
target of reducing costs on an underlying basis by $100 million, the
reduction in the quarter being $21 million.
39 weeks ended October 31, 2009
Total sales were down by 2.2% to $1,636.7 million (39 weeks to November
1, 2008: $1,674.0 million). Same store sales decreased by 3.5%.
Reflecting changes in the merchandise mix, the average unit selling
price decreased by 6.4% in the mall brands and by 8.8% in Jared, on an
underlying basis excluding the impact of the introduction of a charm
bracelet range.
Operating income was up by 23.0% to $111.6 million (39 weeks to November
1, 2008: $90.7 million) including the benefit of $15.0 million from the
change in vacation policy. Operating margin was 6.8% (39 weeks to
November 1, 2008: 5.4%), the improvement arising from management actions
to increase gross merchandise margin and reduce costs (see table above
for the main factors influencing operating margin). The reduction in
costs on an underlying basis was $70 million.
There was a deterioration in net bad debt charge to 6.0% of total sales
(39 weeks to November 1, 2008: 4.8%). The implications for credit card
income of new legislation continue to be reviewed. While steps to
mitigate this are being planned, the net impact on income before income
taxes will be adverse and is expected to exceed $10 million in fiscal
2011. However, as the detailed implementation of the legislation has not
yet been finalized, the extent of the impact cannot be estimated with
any degree of certainty.
Operating initiatives in fiscal 2010
Training of staff to provide high levels of customer service and product
knowledge continues to be a priority and remains a key competitive
advantage.
Differentiated merchandise ranges have been further expanded ahead of
the Holiday Season. For example the Open Hearts by Jane Seymour (TM)
selection has been further developed and, following a very successful
test early in 2009, the Love's Embrace (TM) program has been launched in
all stores. Given the very uncertain outlook for the Holiday Season, a
priority has been flexibility of inventory levels and the supply chain
so as to be able to respond quickly to changes in consumers' buying
behavior.
Television advertising impressions during the Holiday Season are
higher than originally planned, and are forecast to be marginally
up for Jared and down mid-single digits for Kay. Share of voice is
anticipated to remain the largest in the jewelry sector utilizing
proven, successful campaigns.
The planned store
numbers, by format, at January 2010, which reflect a 2% reduction
in square footage, are set out below:
Number of stores Planned at January30, 2010 At January31, 2009
Kay 912 926
Regional brands 250 304
Jared 178 171
UK Division (about 20% of annual sales)
13 weeks ended October 31, 2009
Total sales at constant exchange rates were up by 4.5% (see note 13) and
on a reported basis sales declined by 4.7% to $154.4 million (13 weeks
to November 1, 2008: $162.0 million). Same store sales were down by 0.2%
(H.Samuel down 0.2% and Ernest Jones down 0.3%), with an improved
performance by Ernest Jones being noteworthy. The larger than normal
difference between same store and total sales was primarily due to
timing differences in the UK store refurbishment program. The diamond
category performed relatively well in both Ernest Jones and H.Samuel.
The average unit selling price in H.Samuel was up by 9.6% reflecting
both merchandise mix changes and price increases. In Ernest Jones,
similar factors resulted in the average unit selling price being up by
12.0%, excluding the impact of new charm bracelet ranges.
There was an operating loss of $3.6 million (13 weeks to November 1,
2008: $3.9 million loss). Tight control of costs and inventory was
maintained, with gross merchandise margin little changed (see table
above for main factors influencing operating margin). As previously
indicated, fourth quarter gross merchandise margin is expected to
decrease due to the weakness of sterling and this impact is anticipated
to continue into fiscal 2011.
39 weeks ended October 31, 2009
Total sales at constant exchange rates were up by 0.8% (see note 13), on
a reported basis sales declined by 17.6% to $450.4 million (39 weeks to
November 1, 2008: $546.7 million). Same store sales were down by 3.0%
(H.Samuel down 1.6% and Ernest Jones down 4.6%). There was an operating
loss of $3.9 million (39 weeks to November 1, 2008: operating income of
$1.9 million), the sales deleverage being marginally offset by an
increase in gross merchandise margin (see table above for main factors
influencing operating margin).
Operating initiatives in fiscal 2010
Training of staff to further improve levels of customer service
and product knowledge remains a priority. Exclusive key volume
lines have been increased, and over 25% of fourth quarter sales
are expected to come from new merchandise. Both H.Samuel and
Ernest Jones will make increased use of customer relationship
marketing in the fourth quarter compared to last year. H.Samuel
will also utilize ten second advertisements on national television.
The
planned store numbers by format at January 2010 are set out below:
Number of stores Planned at January30, 2010 At January31, 2009
H.Samuel 345 352
Ernest Jones 204 206
INVESTOR RELATIONS PROGRAM
Change in reporting calendar
In line with an increasing number of US retailers, Signet will, in the
future, report quarterly sales at the same time as its quarterly
results but will continue to make a Christmas Trading Statement.
Therefore the next trading statement is expected to be on January
12, 2010 followed by the fourth quarter and full year results, which are
anticipated to be announced on Thursday, March 25, 2010.
UBS Conference, Thursday, December 10, 2009
Signet will be taking part in a UBS Conference at their London offices
on Thursday, December 10, 2009. Present will be Walker Boyd, Finance
Director and Tim Jackson, Investor Relations Director.
Christmas Trading Statement
The Christmas Trading Statement is expected to be announced at 7.30 a.m.
(EST) and 12.30 p.m. (GMT) on Tuesday, January 12, 2010. There will be a
conference call for all interested parties at 8.30 a.m. (EST) (1.30 p.m.
GMT and 5.30 a.m. Pacific Time) and a simultaneous webcast available at www.signetjewelers.com.
12th Annual ICR Xchange Conference,
Wednesday, January 13, 2010
Signet will be taking part in the ICR XChange Conference on Wednesday,
January 13, 2010 at the St.Regis Monarch Beach Resort, Dana Point,
California. Present will be Terry Burman, Chief Executive and Walker
Boyd, Finance Director. Walker Boyd and Tim Jackson, Investor Relations
Director will also be available for meetings at the conference on
Thursday, January 14, 2010.
Societe Generale Retail Conference, Tuesday, February 2, 2010
Signet will be taking part in the Societe Generale Retail Conference on
Tuesday, February 2, 2010 in Paris. Present will be Walker Boyd, Finance
Director and Tim Jackson, Investor Relations Director.
Unaudited condensed consolidated income statements
for
the 39 weeks ended October 31, 2009
13 weeks 13 weeks 39 weeks 39 weeks Notes
ended ended ended ended
October 31, November 1, October 31, November 1,
2009 2008 2009 2008
$m $m $m $m
Sales 613.7 629.3 2,087.1 2,220.7 2
Cost of sales (447.9) (454.5) (1,444.3) (1,519.1)
Gross margin 165.8 174.8 642.8 701.6
Selling, general and administrative expenses (197.3) (217.3) (633.9) (708.9)
Re-listing costs - - - (10.5) 2
Other operating income, net 28.4 28.3 87.0 87.0
Operating (loss)/income, net (3.1) (14.2) 95.9 69.2 2
Interest income - 0.6 0.7 3.1
Interest expense (7.4) (10.0) (27.2) (25.2)
(Loss)/income before income taxes (10.5) (23.6) 69.4 47.1
Income taxes 3.5 8.5 (22.5) (16.8)
Net (loss)/income (7.0) (15.1) 46.9 30.3
(Loss)/earnings per share -basic $(0.08) $(0.18) $0.55 $0.35 5
-diluted $(0.08) $(0.18) $0.55 $0.35 5
All of the above relate to continuing activities attributable to
equity shareholders.
The accompanying notes are an
integral part of these interim financial statements.
Condensed consolidated balance sheets
at October 31,
2009
October 31, November 1, January 31, Notes
2009 2008 2009
(Unaudited) (Unaudited) (Audited)
$m $m $m
Assets
Current assets:
Cash and cash equivalents 139.6 35.5 96.8
Accounts receivable, net 730.3 718.6 825.2
Other receivables 23.9 25.8 81.8
Other current assets 52.1 44.4 45.0
Deferred tax assets - 0.3 -
Inventories 1,306.0 1,552.7 1,364.4 7
Total current assets 2,251.9 2,377.3 2,413.2
Non-current assets:
Property, plant and equipment, net of accumulated depreciation of 413.6 477.7 452.1
$585.9 million, $579.8 million and $572.6 million, respectively
Goodwill - 529.6 -
Other intangible assets, net 24.9 23.1 23.9
Other assets 12.5 41.4 9.9
Deferred tax assets 53.9 68.0 54.8
Total assets 2,756.8 3,517.1 2,953.9 2
Liabilities and Shareholders' equity
Current liabilities:
Loans and overdrafts 20.3 233.3 187.5
Accounts payable 140.9 121.5 42.2
Accrued expenses and other current liabilities 230.7 235.3 274.8
Deferred revenue 103.0 103.6 120.1 8
Deferred tax liabilities 54.9 49.2 56.9
Income taxes payable 21.1 32.6 55.8
Total current liabilities 570.9 775.5 737.3
Non-current liabilities:
Long-term debt 280.0 380.0 380.0
Other liabilities 78.0 111.3 71.5
Deferred revenue 132.4 130.4 142.5 8
Retirement benefit obligation 8.9 2.8 12.9
Total liabilities 1,070.2 1,400.0 1,344.2
Commitments and contingencies (see note 10)
Shareholders' equity:
Common shares of $0.18 par value: authorized 500 million shares, 15.4 15.3 15.3
85.5 million shares issued and outstanding (November 1, 2008: 85.3
million shares issued and outstanding; January 31, 2009: 85.3
million shares issued and outstanding)
Additional paid-in capital 168.8 164.2 164.5
Other reserves 235.2 235.2 235.2
Treasury shares (1.2) (10.8) (10.7)
Retained earnings 1,439.2 1,841.3 1,400.9
Accumulated other comprehensive loss (170.8) (128.1) (195.5)
Total shareholders' equity 1,686.6 2,117.1 1,609.7
Total liabilities and shareholders' equity 2,756.8 3,517.1 2,953.9
The accompanying notes are an integral part of these interim
financial statements.
Unaudited condensed consolidated statements of cash flows
for
the 39 weeks ended October 31, 2009
13 weeks 13 weeks 39 weeks 39 weeks
ended ended ended ended
October 31, November 1, October 31, November 1,
2009 2008 2009 2008
$m $m $m $m
Cash flows from operating activities
Net (loss)/income (7.0) (15.1) 46.9 30.3
Adjustments to reconcile net income to cash flows provided by
operations:
Depreciation of property, plant and equipment 25.3 27.7 74.7 80.3
Amortization of other intangible assets 2.0 1.4 5.5 4.2
Pension expense (1.4) 0.3 (2.8) 0.8
Share-based compensation expense 1.2 0.1 4.3 0.8
Deferred taxation (1.7) 6.6 0.4 5.1
Facility amendment fees included in net income 0.6 - 4.0 -
Other non-cash movements 3.9 1.4 11.8 (1.4)
Loss on disposal of property, plant and equipment - - 0.4 0.1
Changes in operating assets and liabilities:
Decrease in accounts receivable 35.9 43.1 95.5 129.1
(Increase)/decrease in other receivables (0.4) 1.8 55.4 (5.2)
Increase in other current assets (2.4) (4.5) (16.3) (1.8)
(Increase)/decrease in inventories (30.1) (156.9) 86.5 (147.5)
Increase in accounts payable 47.9 55.8 94.9 43.0
Increase/(decrease) in accrued expenses and other liabilities 14.8 2.1 (48.2) (21.9)
Decrease in deferred revenue (10.9) (9.5) (28.2) (30.5)
Decrease in income taxes payable (23.6) (28.1) (34.3) (44.2)
Effect of exchange rate changes on currency swaps - (43.7) (1.4) (42.5)
Net cash provided by/(used in) operating activities 54.1 (117.5) 349.1 (1.3)
Investing activities
Purchase of property, plant and equipment (9.6) (28.0) (24.4) (91.1)
Purchase of other intangible assets (3.3) (2.7) (6.0) (6.3)
Proceeds from sale of property, plant and equipment 0.1 - 0.1 1.0
Net cash flows used in investing activities (12.8) (30.7) (30.3) (96.4)
Financing activities
Dividends paid - - - (107.4)
Proceeds from issue of common shares 0.9 - 0.9 -
Facility amendment fees paid - - (9.3) -
Proceeds from/(repayment of) short-term borrowings 3.6 116.0 (171.2) 199.7
Repayment of long-term debt - - (100.0) -
Net cash flows provided by/(used in) financing activities 4.5 116.0 (279.6) 92.3
Cash and cash equivalents at beginning of period 92.8 66.9 96.8 41.7
Increase/(decrease) in cash and cash equivalents 45.8 (32.2) 39.2 (5.4)
Effect of exchange rate changes on cash and cash equivalents 1.0 0.8 3.6 (0.8)
Cash and cash equivalents at end of period 139.6 35.5 139.6 35.5
The accompanying notes are an integral part of these interim
financial statements.
Notes to the financial statements
for the 13 weeks
ended October 31, 2009
Unaudited condensed
consolidated statement of shareholders' equity
for the 39
weeks ended October 31, 2009
Common Additional Other Treasury Retained Accumulated Total
shares at paid-in reserves shares earnings other shareholders'
par value capital $m $m $m comprehensive equity
$m $m loss $m
$m
Balance at January 31, 2009 15.3 164.5 235.2 (10.7) 1,400.9 (195.5) 1,609.7
Net income - - - - 46.9 - 46.9
Foreign currency translation adjustments - - - - - 26.4 26.4
Changes in fair value of derivative instruments, net - - - - - (3.7) (3.7)
Actuarial gain on pension plan, net - - - - - 2.0 2.0
Share options exercised - - - 9.5 (8.6) - 0.9
Share-based compensation expense 0.1 4.3 - - - - 4.4
Balance at October 31, 2009 15.4 168.8 235.2 (1.2) 1,439.2 (170.8) 1,686.6
The accompanying notes are an integral part of these interim
financial statements.
Unaudited condensed consolidated statements of comprehensive
(loss)/income
for the 39 weeks ended October 31, 2009
13 weeks 13 weeks 39 weeks 39 weeks
ended ended ended ended
October 31, November 1, October 31, November 1,
2009 2008 2009 2008
$m $m $m $m
Net (loss)/income (7.0) (15.1) 46.9 30.3
Foreign currency translation (5.8) (117.3) 26.4 (117.3)
Changes in fair value of derivative instruments 5.4 (17.5) (5.1) (15.1)
Actuarial gain 1.2 0.5 3.5 1.5
Prior service cost (0.3) 0.3 (0.8) 0.9
Deferred tax on items recognized in equity (1.7) 4.6 0.7 1.4
Comprehensive (loss)/income (8.2) (144.5) 71.6 (98.3)
The accompanying notes are an integral part of these interim
financial statements.
Notes to the unaudited interim financial statements
1. Principal accounting policies and basis of preparation
Basis of preparation
Signet Jewelers Limited (the "Company") and its subsidiary undertakings
(collectively, the "Group") is a leading retailer of jewelry, watches
and associated services. The Group manages its business as two
geographical segments, being the United States of America (the "US") and
the United Kingdom (the "UK"). The US segment operates retail stores
under brands including Kay Jewelers, Jared the Galleria of Jewelry and
various regional brands while the UK segment's retail stores operate
under brands including H.Samuel and Ernest Jones.
These consolidated interim financial statements should be read in
conjunction with the consolidated financial statements and accompanying
notes included on Form 20-F for the year ended January 31, 2009, filed
with the SEC on April 1, 2009.
These interim financial statements of the Group are unaudited. They have
been prepared in accordance with accounting principles generally
accepted in the United States of America ("US GAAP") for interim
financial information. Accordingly, certain information and footnote
disclosures normally included in complete consolidated financial
statements prepared in accordance with US GAAP have been condensed or
omitted from these interim financial statements. However, these interim
financial statements include all adjustments (consisting of normal
recurring accruals and adjustments) that are, in the opinion of
management, necessary to fairly state the results of the interim
periods. Subsequent events have been evaluated up to the date of issue
of these interim financial statements, November 24, 2009.
Use of estimates in interim financial statements
The preparation of interim financial statements, in conformity with US
GAAP for interim reporting, requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the
consolidated interim financial statements and reported amounts of sales
and expenses during the reporting period. Actual results could differ
from those estimates. Estimates and assumptions are primarily made in
relation to valuation of intangible assets, valuation of inventory,
depreciation, valuation of employee benefits, income taxes and
contingencies.
Seasonality
The Group's business is highly seasonal with a very significant
proportion of its sales and operating profit generated during its fourth
quarter, which includes the Christmas season. The Group expects to
continue to experience a seasonal fluctuation in sales and profit.
Therefore, operating results for interim periods are not necessarily
indicative of the results that may be expected for the full year.
Accounting pronouncements adopted during the period
Accounting standards codification
In June 2009, the FASB issued "The FASB Accounting Standards
Codification and the Hierarchy of Generally Accepted Accounting
Principles". This provides for the FASB Accounting Standards
Codification (the "ASC") to become the single official source of
authoritative US GAAP for non-governmental entities. The ASC does not
change existing US GAAP but reorganizes the literature. The adoption of
the ASC is effective for interim and annual periods ending after
September 15, 2009.
Disclosures about derivative instruments
and hedging activities
In March 2008, the FASB issued ASC 815-10 (formerly SFAS No. 161),
"Disclosures about Derivative Instruments and Hedging Activities". The
Statement requires companies with derivative instruments to disclose
information that should enable financial statement users to understand
how and why a company uses derivative instruments, how derivative
instruments and related hedged items are accounted for and how
derivative instruments and related hedged items affect a company's
financial position, financial performance and cash flows. The required
disclosures include the fair value of derivative instruments and their
gains or losses in tabular format, information about credit risk related
contingent features in derivative agreements, counterparty credit risk
and a company's strategies and objectives for using derivative
instruments. ASC 815-10 expands the current disclosure framework and is
effective prospectively for periods beginning on or after November 15,
2008. Adoption of ASC 815-10 increases disclosure requirements but does
not affect the Group's financial position, operating results or cash
flows.
Interim disclosures about fair value of
financial instruments
In April 2009, the FASB issued ASC 825-10 (formerly Staff Position SFAS
107-1 and APB 28-1), "Interim Disclosures about Fair Value of Financial
Instruments". ASC 825-10 requires disclosures about the fair value of
financial instruments for interim reporting periods of publicly traded
companies in addition to annual financial statements. ASC 825-10 also
requires fair value disclosures in summarized financial information at
interim reporting periods. ASC 825-10 is effective for interim periods
ending after June 15, 2009. Adoption of ASC 825-10 increases disclosure
requirements but does not affect the Group's financial position,
operating results or cash flows.
Subsequent events
In May 2009, the FASB issued ASC 855-10 (formerly SFAS No. 165),
"Subsequent Events" regarding the period after the balance sheet date
during which management of a reporting entity shall evaluate events or
transactions that may occur for potential recognition or disclosure in
the financial statements. Additionally, ASC 855-10 sets forth
recognition and disclosure requirements for events or transactions that
occur after the balance sheet date, including a requirement to disclose
the date through which subsequent events have been evaluated. ASC 855-10
is effective prospectively for periods ending after June 15, 2009.
New accounting pronouncements to be adopted in future periods
In December 2008 the FASB issued ASC 715-20 (formerly FSP FAS 132(R)-1)
"Employers' Disclosures about Postretirement Benefit Plan Assets". ASC
715-20 provides guidance on an employer's disclosures about plan assets
of a defined benefit pension or postretirement plan including more
information about how investment allocation decisions are made, more
information about major categories of plan assets and the fair-value
techniques and inputs used to measure assets. ASC 715-20 is effective
for annual periods ending after December 15, 2009. Adoption of ASC
715-20 increases disclosure requirements but does not affect the Group's
financial position, operating results or cash flows.
In August 2009, the FASB issued ASU 2009-05, which amends ASC 820-10
"Fair Value Measurements and Disclosures". ASU 2009-05 provides guidance
on the valuation techniques used to measure fair value in situations
where a quoted price in an active market for the identical liability is
not available. ASU 2009-05 is effective for the first reporting period
beginning after issuance and the adoption of these amendments are not
expected to have a material effect on the Group.
In October 2009, the FASB issued ASU 2009-13, which amends ASC 605-25
"Revenue Recognition -- Multi-Deliverable Arrangements". ASU 2009-15
requires arrangement consideration to be allocated to all deliverables
at inception using a relative selling price method and establishes a
selling price hierarchy for determining the selling price of a
deliverable. The update also expands the disclosure requirements to
include additional detail regarding the deliverables, method of
calculation of selling price and the timing of revenue recognition. ASU
2009-13 is effective prospectively for revenue arrangements entered into
or materially modified in fiscal years beginning on or after June 15,
2010. The Group is currently reviewing the impact that adoption would
have on its financial statements.
2. Segmental information
The consolidated sales are derived from the retailing of jewelry,
watches, other products and services. The Group is managed as two
geographical operating segments, being the US and UK divisions.
These segments represent channels of distribution that offer
similar merchandise and service and have similar marketing and
distribution strategies. Both divisions are managed by executive
committees, which report through the Chief Executive to the Board.
Each divisional executive committee is responsible for operating
decisions within parameters set by the Board. The performance of
each segment is regularly evaluated based on sales and operating
income. The operating segments do not include income taxes or
certain central costs, and there are no material transactions
between the operating segments.
The accounting policies
of the segments are the same as those used to report under US GAAP.
13 weeks 13 weeks 39 weeks 39 weeks
ended ended ended ended
October 31, November 1, October 31, November 1,
2009 2008 2009 2008
$m $m $m $m
Sales:
US 459.3 467.3 1,636.7 1,674.0
UK 154.4 162.0 450.4 546.7
Total sales 613.7 629.3 2,087.1 2,220.7
Operating (loss)/income, net:
US 4.8 (6.2) 111.6 90.7
UK (3.6) (3.9) (3.9) 1.9
Unallocated(1) (4.3) (4.1) (11.8) (23.4)
Total operating (loss)/income, net (3.1) (14.2) 95.9 69.2
October 31, November 1, January 31,
2009 2008 2009
$m $m $m
Total assets:
US 2,256.8 2,658.1 2,287.0
UK 422.1 617.2 343.1
Unallocated 77.9 241.8 323.8
Total assets 2,756.8 3,517.1 2,953.9
(1) Unallocated principally relates to central costs. In the 39 weeks
ended November 1, 2008 unallocated includes $10.5 million of
re-listing costs in respect of moving the primary listing to the
NYSE.
3. Exchange rates
The exchange rates used in these interim financial statements for
the translation of UK pound sterling transactions and balances
into US dollars are as follows:
October 31, November 1, January 31,
2009 2008 2009
Income statement (average rate) 1.57 1.92 1.75
Balance sheet (closing rate) 1.64 1.62 1.45
4. Taxation
The Group has business activity in all states within the US and files
income tax returns for the US federal jurisdiction and all applicable
states. The Group also files income tax returns in the UK and certain
other foreign jurisdictions. The Group is subject to US federal and
state examinations by tax authorities for tax years after October 29,
2005 and is subject to examination by the UK tax authority for tax years
after January 31, 2005.
As of January 31, 2009, the Group had approximately $18.8 million of
unrecognized tax benefits in respect of uncertain tax positions, all of
which would favorably affect the effective income tax rate if resolved
in the Group's favor. These unrecognized tax benefits relate to
financing arrangements and intra-group charges which are subject to
different and changing interpretations of tax law.
During the 39 weeks ended October 31, 2009, agreement was reached with
the Internal Revenue Service in the US in respect of the treatment of
certain financing arrangements and a cash settlement was paid of
approximately $4.0 million, excluding interest thereon. Apart from this
settlement there has been no material change in the amount of
unrecognized tax benefits in respect of uncertain tax positions during
the 39 weeks ended October 31, 2009.
The Group recognizes accrued interest and penalties related to
unrecognized tax benefits within income tax expense. As of January 31,
2009 the Group had accrued interest and penalties of $3.8 million and
this has been reduced to approximately $2.9 million as of October 31,
2009, due to the payment of interest during the period on the above cash
settlement.
Over the next twelve months management believes that it is reasonably
possible that there could be a reduction of substantially all of the
unrecognized tax benefits as of January 31, 2009, due to settlement of
the uncertain tax positions with the tax authorities.
5. (Loss)/earnings per share
13 weeks 13 weeks 39 weeks 39 weeks
ended ended ended ended
October 31, November 1, October 31, November 1,
2009 2008 2009 2008
Net (loss)/income ($ million) (7.0) (15.1) 46.9 30.3
Basic weighted average number of shares in issue (million) 85.4 85.2 85.3 85.2
Dilutive effect of share options (million) - - 0.3 0.3
Diluted weighted average number of shares in issue (million) 85.4 85.2 85.6 85.5
(Loss)/earnings per share - basic $(0.08) $(0.18) $0.55 $0.35
(Loss)/earnings per share - diluted $(0.08) $(0.18) $0.55 $0.35
The basic weighted average number of shares excludes shares held
by the Employee Stock Ownership Trust as such shares are not
considered outstanding and do not qualify for dividends. The
effect of this is to reduce the average number of shares in the 13
and 39 week periods ended October 31, 2009 by 60,803 and 74,882
shares respectively (13 and 39 week periods ended November 1,
2008: 83,130 shares). The calculation of fully diluted earnings
per share for the 13 and 39 week periods ended October 31, 2009
excludes options to purchase 3,682,313 and 2,787,864 shares
respectively (13 and 39 week periods ended November 1, 2008:
3,364,134 and 3,107,698 share options respectively) on the basis
that their effect on earnings per share was anti-dilutive.
6. Dividends
13 weeks 13 weeks 39 weeks 39 weeks
ended ended ended ended
October 31, November 1, October 31, November 1,
2009 2008 2009 2008
Final dividend paid of 6.317c per share - - - 107.4
A final dividend of 6.317c per share was paid on July 3, 2008 in
respect of the year ended February 2, 2008.
7. Inventories
October 31, November 1, January 31,
2009 2008 2009
$m $m $m
Raw materials 5.4 32.9 25.5
Finished goods 1,300.6 1,519.8 1,338.9
Total inventory 1,306.0 1,552.7 1,364.4
8. Deferred revenue
October 31, November 1, January 31,
2009 2008 2009
$m $m $m
Warranty deferred revenue 228.3 231.4 243.1
Other 7.1 2.6 19.5
Total deferred revenue 235.4 234.0 262.6
Disclosed as:
Current liabilities 103.0 103.6 120.1
Non-current liabilities 132.4 130.4 142.5
Total deferred revenue 235.4 234.0 262.6
13 weeks 13 weeks 39 weeks 39 weeks
ended ended ended ended
October 31, November 1, October 31, November 1,
2009 2008 2009 2008
$m $m $m $m
Warranty deferred revenue, beginning of period 239.0 242.0 243.1 246.6
Warranties sold 27.1 26.4 101.2 97.7
Revenues recognized (37.8) (37.0) (116.0) (112.9)
Warranty deferred revenue, end of period 228.3 231.4 228.3 231.4
9. Derivative instruments and hedging activities
The Group is exposed to foreign currency exchange risk arising from
various currency exposures. The Group enters into forward foreign
currency exchange contracts and certain foreign currency option
contracts, principally in US dollars, in order to limit the impact of
movements in foreign exchange rates on its forecast foreign currency
purchases. The total notional amount of these foreign currency contracts
outstanding as at October 31, 2009 was $56.3 million. These contracts
have been designated as cash flow hedges and will be settled over the
next 21 months.
The Group enters into forward purchase contracts, and certain option
contracts, for commodities in order to reduce its exposure to
significant movements in the price of the underlying precious metal raw
material. The total notional amount of commodity contracts outstanding
as at October 31, 2009 was $47.4 million. These contracts have been
designated as cash flow hedges and will be settled over the next 15
months.
For derivatives that are designated and qualify as a cash flow hedge,
the effective portion of the gain or loss on the derivative is reported
as a component of other comprehensive income ("OCI") and reclassified
into earnings in the same period in which the hedged item affects net
income or loss. Gains and losses on derivatives that do not qualify for
hedge accounting, together with any hedge ineffectiveness, are
recognized immediately in other operating income, net. The Group does
not hold derivative contracts for trading purposes.
Foreign currency contracts not designated as cash flow hedges are used
to hedge currency flows through the Group's bank accounts to minimize
the Group's exposure to foreign currency exchange risk in its cash and
borrowings.
The following table summarizes the fair value and presentation of
derivative instruments in the condensed consolidated balance sheets:
Derivative assets
October 31, 2009 January 31, 2009
(unaudited) (audited)
Balance sheet Fair value Balance sheet Fair value
location $m location $m
Derivatives designated as hedging instruments:
Foreign currency contracts Other current assets 2.2 Other current assets 12.0
Commodity contracts Other current assets 5.4 Other current assets 12.0
7.6 24.0
Derivatives not designated as hedging instruments:
Foreign currency contracts Other current assets - Other current assets 0.1
- 0.1
Total derivative assets 7.6 24.1
Derivative liabilities
October 31, 2009 January 31, 2009
(unaudited) (audited)
Balance sheet Fair value Balance sheet Fair value
location $m location $m
Derivatives designated as hedging instruments:
Foreign currency contracts Other current liabilities (1.3) Other current liabilities -
Commodity contracts Other current liabilities (0.1) Other current liabilities -
(1.4) -
Derivatives not designated as hedging instruments:
Foreign currency contracts Other current liabilities (0.1) Other current liabilities -
(0.1) -
Total derivative liabilities (1.5) -
The following tables summarize the effect of derivative instruments on
the unaudited condensed consolidated income statements:
Derivatives in cash flow hedging relationships Amount of gain/(loss) Location of Amount of gain/(loss) reclassified
recognized in OCI on gain/(loss) from accumulated OCI into
derivatives reclassified from income
(Effective accumulated (Effective
portion) OCI portion)
into income
(Effective portion)
39 weeks 39 weeks 39 weeks 39 weeks
ended ended ended ended
October 31, November 1, October 31, November 1,
2009 2008 2009 2008
$m $m $m $m
Foreign currency contracts (5.1) 12.1 Cost of sales 5.1 -
Commodity contracts 4.6 (22.6) Cost of sales (0.5) 4.6
Total (0.5) (10.5) 4.6 4.6
Derivatives in cash flow hedging relationships Location of gain/(loss) Amount of gain/(loss) reclassified from accumulated
reclassified from accumulated OCI into
OCI income
into income (Ineffective portion)
(Ineffective portion)
39 weeks ended 39 weeks ended
October 31, 2009 November 1, 2008
$m $m
Foreign currency contracts Other operating income, net - 2.2
Commodity contracts Other operating income, net - (1.5)
Total - 0.7
Derivatives not designated as hedging instruments Location of gain/(loss) Amount of gain/(loss) recognized in
recognized in income on income on derivatives
derivatives
39 weeks ended 39 weeks ended
October 31, 2009 November 1, 2008
$m $m
Foreign currency contracts Other operating income, net - (42.1)
Total - (42.1)
The estimated fair values of the Group's financial instruments held or
issued to finance the Group's operations are summarized below. Assets
and liabilities carried at fair value are required to be classified and
disclosed in one of the following three categories:
Level 1 - quoted market prices in active markets for identical assets
and liabilities
Level 2 - observable market based inputs or unobservable inputs that are
corroborated by market data
Level 3 - unobservable inputs that are not corroborated by market data
The Group determines fair value based upon quoted prices when available
or through the use of alternative approaches, such as discounting the
expected cash flows using market interest rates commensurate with the
credit quality and duration of the investment. The methods the Group
uses to determine fair value on an instrument specific basis are
detailed below.
The following table summarizes the valuation of financial instruments
categorized by fair valuation level:
October 31, 2009 November 1, 2008
$m $m
Carrying Significant other Carrying Significant other
Value observable inputs Value observable inputs
(Level (Level 2)
2)
Assets:
Forward foreign currency contracts and swaps 2.2 2.2 18.8 18.8
Forward commodity contracts 5.4 5.4 - -
Liabilities:
Borrowings (300.3) (317.8) (613.3) (575.8)
Forward foreign currency contracts and swaps (1.4) (1.4) (1.6) (1.6)
Forward commodity contracts (0.1) (0.1) (15.9) (15.9)
The fair values of the Group's derivative instruments are based on
market value equivalents at the balance sheet date. The fair value
of the Group's Private Placement Note debt is determined by
discounting, to present value, the known future coupon and final
Note redemption amounts at market yields as of the balance sheet
date. The carrying amounts of cash and cash equivalents, accounts
receivable, other receivables, accounts payable and accrued
liabilities approximate fair value because of the short term
maturity of these amounts.
10. Commitments and contingencies
Litigation
The Group is not party to any legal proceedings considered to be
material to the financial statements. Furthermore, no director, officer
or affiliate of the Group or any associate of any such director has been
a party adverse to the Group or any of its subsidiaries or has a
material interest adverse to the Group or any of its subsidiaries.
A class action lawsuit for an unspecified amount has been filed against
Sterling Jewelers Inc, a subsidiary of the Company, in the New York
federal court by private plaintiffs. The US Equal Opportunities
Commission has filed a separate lawsuit alleging that US store-level
employment practices are discriminatory as to compensation and
promotional activities. The Group denies these allegations and intends
to defend them vigorously.
11. Share options
The Group recorded net share-based compensation expense of $4.3 million
and $0.8 million for the 39 weeks ended October 31, 2009 and November 1,
2008, after charging $0.1 million (39 weeks ended November 1, 2008:
crediting $2.1 million) relating to the change in fair value during the
period of awards with an inflation condition accounted for as liability
awards.
12. Long-term debt
On March 13, 2009 the Group entered into amendment agreements to the
revolving credit facility agreement and Note Purchase Agreement. Under
the amended agreements Signet prepaid $100 million of the notes at par
plus interest on March 18, 2009 and the revolving credit agreement was
reduced in size to $370 million on March 13, 2009. In addition, the
margins paid on the revolving credit agreement and the coupon on the
notes were increased. The most stringent condition under the original
agreements was a fixed charge cover covenant. The definition of this
covenant has been amended to include depreciation in the earnings and
exclude service charges and rates from expenses. This revised covenant
is set at 1.4:1, using the amended definition, until the end of fiscal
2012, equivalent to a reduction to about 1.1:1 from 1.4:1 under the
former definition of fixed charge cover. The fixed charge cover is then
set at 1.55:1 until the end of fiscal 2013 and thereafter is set at
1.85:1. The amended agreements also reduced the permitted ratio of net
debt to earnings before interest, tax, depreciation and amortization
covenant to 2:1 from 3:1 (2.5 in the third quarter of each fiscal year)
until the end of the fiscal year 2013 and places restrictions on the
Group's ability to undertake certain activities, including cash
distributions to shareholders. Amendment fees and other related costs of
$5.9 million were capitalized, with a further $3.4 million charged to
the income statement in the 13 weeks ended May 2, 2009. In the 13 weeks
ended October 31, 2009, $0.4m of the capitalized balance has been
amortized and $0.6m was amortized in the 39 weeks ended October 31,
2009. A more detailed description of the amendments can be found in the
"Amended Facility Agreement and Amended Note Purchase Agreement" section
on the Company's Form 20-F for the year ended January 31, 2009.
13. Impact of constant exchange rates
The Group has historically used constant exchange rates to compare
period-to-period changes in certain financial data. This is referred to
as 'at constant exchange rates' throughout this release. The Group
considers this a useful measure for analyzing and explaining changes and
trends in the Group's results. The impact of the re-calculation of
sales, profit and earnings per share at constant exchange rates,
including a reconciliation to the Group's GAAP results, is analyzed
below.
13 weeks ended October 31, 2009 13 weeks 13 weeks Growth at Impact of At constant Growth at
ended ended actual exchange exchange rates constant
October 31, November 1, exchange rate (non-GAAP) exchange
2009 2008 rates movement rates
(non-GAAP)
$m $m % $m $m %
Sales
US 459.3 467.3 -1.7% - 467.3 -1.7%
UK 154.4 162.0 -4.7% (14.2) 147.8 4.5%
Total sales 613.7 629.3 -2.5% (14.2) 615.1 -0.2%
Operating (loss)/income, net
US 4.8 (6.2) n/a - (6.2) n/a
UK (3.6) (3.9) -7.7% 1.0 (2.9) 24.1%
Unallocated (4.3) (4.1) 4.9% 0.4 (3.7) 16.2%
Operating loss, net (3.1) (14.2) -78.2% 1.4 (12.8) -75.8%
Loss before income taxes (10.5) (23.6) -55.5% 1.4 (22.2) -52.7%
Loss per share - basic $(0.08) $(0.18) -55.6% $0.01 $(0.17) -52.9%
39 weeks ended October 31, 2009 39 weeks 39 weeks Growth at Impact of At constant Growth at
ended ended actual exchange exchange rates constant
October 31, November 1, exchange rate (non-GAAP) exchange
2009 2008 rates movement rates
(non-GAAP)
$m $m % $m $m %
Sales
US 1,636.7 1,674.0 -2.2% - 1,674.0 -2.2%
UK 450.4 546.7 -17.6% (99.7) 447.0 0.8%
Total sales 2,087.1 2,220.7 -6.0% (99.7) 2,121.0 -1.6%
Operating income, net
US 111.6 90.7 23.0% - 90.7 23.0%
UK (3.9) 1.9 n/a (0.3) 1.6 n/a
Unallocated - underlying (11.8) (12.9) -8.5% 2.4 (10.5) 12.4%
- re-listing costs - (10.5) n/a - (10.5) n/a
Operating income, net 95.9 69.2 38.6% 2.1 71.3 34.5%
Income before income taxes 69.4 47.1 47.3% 2.3 49.4 40.5%
Earnings per share - basic $0.55 $0.35 57.1% $0.02 $0.37 48.6%
14. Net debt
October 31, November 1, January 31,
2009 2008 2009
$m $m $m
Cash and cash equivalents 139.6 35.5 96.8
Loans and overdrafts (20.3) (233.3) (187.5)
Long-term debt (280.0) (380.0) (380.0)
Net debt (160.7) (577.8) (470.7)
15. Underlying operating (loss)/income
13 weeks 13 weeks 39 weeks 39 weeks 39 weeks
ended ended ended ended Growth at
October 31, November 1, October 31, November 1, actual
2009 2008 2009 2008 exchange
rates
$m $m $m $m %
Operating (loss)/income (3.1) (14.2) 95.9 69.2 38.6%
Unallocated re-listing costs - - - 10.5 n/a
Change in US vacation policy (5.0) - (15.0) - n/a
Underlying operating (loss)/income (8.1) (14.2) 80.9 79.7 1.5%
SOURCE: Signet Jewelers Ltd
Signet Jewelers
Terry Burman, Chief Executive, +1 (441) 296-5872
Walker Boyd, Finance Director, +1 (441) 296-5872
or
ICR, Inc.
Alecia Pulman, +1 (646) 277-1220
or
Brunswick
Jonathan Glass, +44 (0) 20 7404 5959
For full details on Signet Jewelers Limited (SIG) SIG. Signet Jewelers Limited (SIG) has Short Term PowerRatings at TradingMarkets. Details on Signet Jewelers Limited (SIG) Short Term PowerRatings is available at This Link.
- SmarTrend's Candlestick Scanner Detects Bullish Engulfing Pattern for Signet Jewelers (SIG) - 01/27/10
- Zacks.com featured expert Kevin Matras highlights: Meredith Corporation, The Estee Lauder Companies Inc., Signet Jewelers Ltd., - 01/20/10
- Signet Jewelers Ltd. (SIG) Corporate Event Announcement Notice - 01/13/10
- Signet Jewelers Ltd. (SIG) Corporate Event Announcement Notice - 01/12/10
- Signet Guides Above Estimates - 01/12/10
- More News >>
