Signet's fourth-quarter sales at stores open at least a year grew 4.9 percent, compared to the 4.2-percent increase for the same period in fiscal 2015.
CLEVELAND, Ohio - Signet Jewelers Ltd. said its same-store sales grew 4.9 percent and its profits-per-share increased more than 20 percent for the final 13 weeks of its fiscal 2016 retail year.
The world's largest retailer of diamond jewelry Monday said that Signet's credit program helped increase its profitability, and that earnings-per-share increased more than they were expected to.
Signet Jewelers is based in Hamilton, Bermuda, but its U.S. retail operations are headquartered in Akron. Signet operates 3,600 stores worldwide under the brands Kay Jewelers, Zales, Jared The Galleria Of Jewelry, H.Samuel, Ernest Jones, Peoples, Piercing Pagoda, and regional brands like J.B. Robinson Jewelers.
Other highlights announced Feb. 29 include:
-- Earnings-per-share for the 13 weeks that ended Jan. 30 increased 20.4 percent to $3.42 per share, compared to $2.84 per share for the final 13 weeks of the last fiscal year.
-- Fourth-quarter sales at stores open at least a year grew 4.9 percent, compared to a 4.2-percent increase for the same period in fiscal 2015.
-- The amount of net synergies that Signet expects to achieve from its 2014 acquisition of Zale Corp. increased to $225 million over three years, up from previous estimates of $150 million to $175 million. The majority of synergies is expected in fiscal 2017.
-- Signet's board approved an 18-percent increase in dividend, and of buying back shares of $750 million.
"Signet delivered outstanding fourth quarter results exceeding the high end of our adjusted EPS (earnings per share) guidance with year-over-year growth of 18.6 percent, driven by a solid 4.9-percent increase in same-store sales," said Signet Chief Executive Mark Light, in a written statement.
"Our business was strong in the fourth quarter as evidenced by our accelerating same store sales performance. At the same time our credit metrics improved from the third quarter in line with expectations, and we remain confident in the strength of our credit portfolio."
"We look forward to updating our Q1 performance on our full earnings call March 24," Light said.
"After having operated Zales for a full year we have identified a significant number of incremental synergy opportunities and are increasing our expectations for total synergies from $150 million to $175 million, to $225 million to $250 million by the end of fiscal year 2018, with a faster pace of synergy realization than previously guided."
