For the fourth quarter that ended Jan. 31, total sales rose 45.5 percent to nearly $2.3 billion, with Zale Corp. contributing $636.7 million of the $712.4 million increase.
AKRON, Ohio -- Signet Jewelers Ltd., the largest jewelry retailer in the U.S., the United Kingdom and Canada, reported a sparkling year for sales in fiscal 2015, again in large part due to its acquisition of Zale Corp. and sales of higher-priced jewels.
For the fourth quarter that ended Jan. 31, Signet's total sales rose 45.5 percent to nearly $2.3 billion. For the same quarter of fiscal 2014, total sales were $1.6 billion. Zale contributed $636.7 million of the $712.4 million increase.
Net profits for the quarter were $228 million, or $2.84 per share, higher than its projected range of $2.69 to $2.83 per share.
Among the other highlights the Hamilton, Bermuda-based company reported this week:
1.) Signet saw a 4.2 percent increase in stores open at least a year, called same-store sales. E-commerce sales nearly doubled to $149.6 million, compared with $79 million in the fourth quarter of fiscal 2014.
2.) At the Akron-based Sterling Jewelers division of Signet, which includes Kay Jewelers, Jared the Galleria of Jewelry, and regional brands, same-store sales rose 3.7 percent and operating profits were at record levels, said Signet Chief Executive Mark Light.
Sterling's sales were primarily due to bridal and higher priced diamond jewelry, with the average transaction price up by 4.5 percent. Kay's same-store sales were up 4.6 percent, while Jared's were up 2.6 percent.
3.) "Our U.K. division saw its highest fourth quarter same stores sales increase in 13 years at 7.5 percent and its best operating profit in three years," he said in a written statement. Same-store sales rose 6 percent at H.Samuel and 9.3 percent at Ernest Jones.
4.) Zale Corp., acquired on May 29, 2014, had same store sales of 3.7 percent, also due to bridal and branded diamond collections, as well as "the removal of non-productive inventory" to make way for newer items.
"We are making good progress on the integration of Zale into our organization and continue to see significant opportunities in front of us," Light said. "Our integration efforts are expected to allow us to unlock the value of this strong, well-known national brand. We are well-positioned to meet our goal of $150 million to $175 million in cumulative three-year synergies by the end of January 2018."
5.) For fiscal 2015, Signet's total sales were $5.7 billion, its net profits were $381.3 million, its same-store sales were up 4.1 percent, and its earnings-per-share were $4.75.
The company ended the year with 3,579 stores, including 1,055 Kay stores, 203 Jared stores, 213 regional brands, 304 H. Samuel stores, and 189 Ernest Jones stores.
The Zale division included 722 Zales Jewelers, 91 Gordon's Jewelers, 145 People's Jewellers, 48 Mappins stores, and 613 Piercing Pagodas.
6.) Signet's shares rose to $136.95 in early-morning trading on Friday, up nearly $2 per share from Thursday's close of $135.
7.) For the first quarter of fiscal 2016 that ends on May 2, 2015, Signet is projecting same-store sales of 3 percent to 4 percent and earnings-per-share of $1.42 to $1.49, again with a lift from Zale's stores.
Signet plans to invest in 30 to 35 new Kay and Jared stores, remodel existing stores, and spend $80 million to $90 million on Zale's information technology infrastructure and stores.
Signet announced a 22 percent increase in its cash dividend, to 22 cents per common share from 18 cents, payable on May 27 to shareholders of record as of May 1.