Lower Expenses Help Signet Boost Earnings

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On June 4, 2009, Signet Group(SIG Quote) reported a 2.3% increase in its Q1 FY10 earnings, helped by lower expenses partially offset by declining revenues. Net income stood at $26.30 million or $0.31 per share compared to $25.70 million or $0.30 per share in Q1 FY09.

Revenue fell 7.3% to $762.60 million from $822.50 million a year ago, reflecting an underlying decrease of 1.1% at constant exchange rates, as well as a 2.9% decrease in same store sales. Geographically, revenue from the US market, contributing 81.9% to the total revenue, inched down marginally to $624.90 million from $631.10 million. Average unit selling price fell by 9.0% in the mall brands and by 7.0% in Jared, excluding the impact of a new merchandising program. Furthermore, revenue from the UK slumped 28.1% to $137.70 million from $191.40 million, due to a 4.2% drop in same-store sales, with H. Samuel down 2.0% and Ernest Jones down 6.7%. ...