Signet Jewelers Ltd., the parent of Sterling Jewelers, which is headquartered in Akron and operates Kay and Jared stores, on Tuesday reported a slight decline in profits for the third quarter, but an increase in sales.
Mike Barnes, CEO of Signet, noted in a statement that results were led by a 5.8 percent increase in sales at Kay stores open at least a year.
Signet, the largest operator of jewelry stores in the United States and the United Kingdom, generates the vast majority of its sales from stores such as Kay and Jared in the United States.
Signet’s profits for the third quarter were $33.6 million, or 42 cents a share, down 2.3 percent from $34.9 million, or 43 cents a share, for the third quarter a year ago.
Signet pointed out in a statement that when results from its Ultra stores are excluded, earnings per share increased to 45 cents, up 4.7 percent from the same quarter a year ago.
The company bought Ultra Stores Inc. of Chicago last year. Ultra has stores mostly in outlet malls. Earlier this fall, the company said it had converted nearly 70 Ultra stores to Kay outlet stores, and was operating approximately 120 Kay outlets and 39 Ultra stores.
For the fourth quarter, which includes the all-important holiday shopping season, Signet said it expects stores open at least a year to see sales increase in the low to middle single-digit range.
Earnings per share are expected to be in the range of $2.30 to $2.40 in the quarter.
Sales for the third quarter totaled $771.4 million, up $55.2 million or 7.7 percent, compared to $716.2 million in the 13 weeks ended October 27, 2012.
In the United States division, total sales were $632.1 million, up $56.5 million or 9.8 percent, from sales totaling $575.6 million in the year-ago quarter.
Sales at stores open at least a year increased 4.2 percent compared to an increase of 1.2 percent in the year-ago quarter.
Signet said sales increases were driven by “particular strength” in bridal-related jewelry, watches and colored diamonds.
Kay and Jared stores saw increases in customers as well as the average amount each customer spent.
Signet’s online sales in the United States were $16.2 million, up 11.7 percent from $14.5 million in the third quarter a year ago.
The company said it expects capital expenses for the year to total $180 million to $185 million, including costs related to the opening of 75 to 85 new Kay and Jared stores, store remodeling projects, digital and information technology expenditures, and developing its outlet stores.
The Akron-headquartered Sterling division of Signet operates more than 1,400 jewelry stores across the country, primarily under the name brands of Kay Jewelers and Jared The Galleria Of Jewelry.
Earlier this year, Sterling reported that it had more than 2,000 employees in the greater Akron area.
Later Tuesday, competitor Zale Corp. of Irving, Texas, was issue its own quarterly financial report.
Katie Byard can be reached at 330-996-3781 or kbyard@thebeaconjournal.com