Signet seen downward trend in sales and profits

Signet Group has announced its results for the year ended February 2, 2008. The company had to bear a 16.8 percent decline in its annual profit as its annual pretax profit was $333.5 million. Total sales slipped 6.1 percent for the fourth quarter ending February 2, 2008. The group’s same-store sales were down by 0.7 percent, while total sales increased by 3 percent to $3,665.3 million.

Signet Group Chief Executive Terry Burman commented: "2007/2008 was a very demanding year for the group, with a particularly difficult fourth quarter. While the U.S. business saw an unprecedented weakening in sales over Christmas, and faced the impact of commodity cost increases, it continued to be a leader in setting industry operating standards.

Since the beginning of the 2008/2009 period, Signet’s same-store sales in US were down about 4 percent. Its Kay Jewelers division earned sales of $1,489.6 million, and sales of Jared The Galleria Of Jewelry increased by 13.8 percent to $756.4 million.

In the present year, the US net store space growth is projected to be 5 percent lower. Signet is making plans to drive sales, protect gross margin and tightly control costs within the present indefinite economic environment in the United States.