Zale business cuts Signet Q2 profit, boosts sales

Hamilton, Bermuda – Sixty-five days of performance from its new Zale division cut net income at Signet Jewelers Ltd. but boosted sales at Signet Jewelers Ltd. in the second quarter of fiscal 2015. Expenses related to the Zale acquisition helped reduced net income 13% to $58 million, from $67.4 million a year earlier.

Total sales were $1.22 billion, up 39%, compared to $880.2 million in prior year second quarter. The increase was primarily driven by the addition of the Zale division which added $247.5 million of sales to second quarter fiscal 2015. Organic same-store sales increased 6.3%, and e-commerce sales were $50.5 million, up 61.9% from $19.3 million.

Based on results so far, Signet now expects three-year synergy opportunities from its Zale acquisition will be $150 million to $175 million, up from its previous expectation of $100 million. Same-store sales are expected to rise in the third quarter.

 

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