By Melodie Warner
Signet Jewelers Ltd.'s fiscal fourth-quarter earnings fell 8.7% as more advertising led to higher expenses.
The operator of Kay Jewelers, Jared the Galleria of Jewelry and chains in the U.K. has seen revenue recover in recent quarters after low mall traffic and tight consumer credit dented sales last year. Jewelers have faced uncertainty during the downturn as consumers cut back, and higher costs for commodities such as gold and diamonds also weighed on the sector.
Signet reported a profit of $105.4 million, or $1.21 a share, for the quarter ended Jan. 29, down from $115.5 million, or $1.34, a year earlier. Excluding a make-whole payment tied to the prepayment of notes, earnings for the latest period were $1.55 a share.
Sales jumped 6.2% to $1.27 billion, while same-store sales rose 8.1%.
Gross margin rose to 40.8% from 36%.
Selling, general and administrative costs rose 19% primarily due to increased television ads.
