Total sales rose 6.9 percent...

Signet Group sales for nine weeks that ended January 1, 2011, and included the Christmas season, rose 6 percent while same-store sales rose 8.1 percent. At constant exchange rates, total sales rose 6.9 percent.

U.S. division sales rose 10.4 percent and same-store sales rose by 11.7 percent. But in the U.K., Signet reported that total sales fell 5.3 percent on a constant exchange rate and same-store sales slipped 4.2 percent.

The average unit selling price in the U.S., excluding the charm bracelet category, rose 11.3 percent to $338. The average unit selling price in the U.K. rose 4.9 percent in local currency to GBP 81.

Terry Burman, Signet's chief executive, said that group was "very pleased" with the U.S. performance during Christmas season.

"We believe that our long term strategy of focusing on the further development of products that differentiate us from our competitors, best in class customer service, and great marketing campaigns that leverage our leading share of voice has once again proven to be successful," he said.

"This strategy increasingly sets us apart in the marketplace and drives profitable market share gains. The U.K. was negatively impacted by exceptionally adverse winter weather; however divisional management maintained very good control of gross merchandise margin and costs."

Burman added that Signet expects an increase of about 42 percent in adjusted earnings per share for fiscal 2011, with operating margins up in the U.S. and little changed in the U.K. "In addition, we are increasing our guidance for free cash flow to $275 million to $300 million before the 'make whole payment,' compared to our original target at the start of fiscal 2011 of $150 million to $200 million," he said.

By: Jeff Miller of RAPAPORT

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