Signet Posts 4Q Loss Due To Impairment Charge

NEW YORK (AP) — Signet Jewelers Ltd., the parent of Kay Jewelers and other retail chains, on Wednesday reported a fourth-quarter loss due to a hefty goodwill impairment charge.

The London-based company, which has struggled as consumers have curbed their discretionary spending amid the recession, also said it would not pay a dividend given current economic conditions. The move comes as Signet looks to cut U.S. expenses by $100 million between 2009 and 2010 and pay down debt by about $200 million next year.

For the fourth quarter, Signet reported a loss of $424 million, or $4.97 per share. That compares with profit of $143 million, or $1.65 per share, in the same quarter a year earlier.

The latest quarter included a $516.9 million goodwill impairment charge.

Sales for the period ended Jan. 31 fell 19 percent to $1.12 billion from $1.38 billion.

For the full year, Signet lost $393.7 million, or $4.62 per share, compared with earnings of $219.8 million, or $2.55 per share, in the prior year.

Adjusted profit in the latest fiscal year was $133.7 million, or $1.57 per share.

Annual revenue slipped 9 percent to $3.34 billion from $3.67 billion partly due to the stronger dollar, while same-store sales dropped 8.2 percent.

Same-store sales, or sales at stores open at least a year, are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.

Signet operated 1,959 jewelry stores as of Jan. 31.