Signet Jewelers CEO Mike Barnes Resigns; Replaced by Mark Light

Mike Barnes

Signet Jewelers Ltd. said Tuesday that Michael Barnes will resign from his position as chief executive officer and from Signet's board of directors, effective October 31, in order to be closer to his family in Dallas.

Mark Light, Signet's president and chief operating officer, has been named to succeed Barnes as CEO and take a seat on the board.

Signet said it is also reaffirming its financial guidance initiated in its second quarter earnings release on August 28.

Barnes joined Signet in December 2010 and became its CEO in January 2011, replacing Terry Burman, the company’s longtime CEO. Most recently he oversaw the $1.46 billion acquisition of Dallas-based Zale Corp., its largest US competitor, in May, making Signet the largest specialty jewelry retailer in the US, UK and Canada with approximately 3,500 retail outlets.

“Mike has been the leader of the Signet executive management team during a period of outstanding transformation and growth,” said Todd Stitzer, Signet chairman. “Since he joined Signet in 2010, Mike has been an instrumental part of Signet's success. He has played a critical role in Signet's recent acquisition of Zale Corp. and its continuing integration. He has also led the development of Signet's Vision 2020 Initiative for the future. We understand and respect his personal desire to relocate nearer to his family and pursue opportunities closer to his home in Dallas at this time.”

Signet is based in Bermuda and is listed on the NYSE. Its US subsidiary, Sterling Jewelers, with more than 1,400 stores in 50 states, is headquartered in Akron, Ohio. The company, in an SEC filing Tuesday, said it will pay Barnes accrued but unpaid benefits or obligations, his base salary for 12 additional months and an annual bonus at the end of the fiscal year.


Light has been with Signet for more than 30 years, with primary responsibility for the Sterling division, by far Sterling’s largest division, until the Zale Corp. acquisition.

“We are delighted to announce Mark’s promotion to chief executive officer of Signet,” Stitzer said. “Mark is an experienced, strategic leader who has been deeply involved in the company's Vision 2020 Strategy, the Zale acquisition and its ongoing integration. In addition he has a meticulous approach to operational details, and has been the main architect of our Sterling division's consistently profitable growth and has played a key role in defining and executing Signet's growth strategy. He has also been an advisor to our UK Managing Director since 2013 and became formally responsible for that business in mid-2014.”

Signet's Sterling division operates primarily under the brands of Kay Jewelers and Jared The Galleria Of Jewelry. Signet's UK division operates approximately 500 stores primarily under the name brands of H.Samuel and Ernest Jones. Signet's Zale division operates more than 1,600 locations in the US and Canada primarily under the name brands of Zales, People's, and Piercing Pagoda. The company also has online operations at www.kay.com, www.jared.com, www.hsamuel.co.uk, www.ernestjones.co.uk, www.zales.com, and www.peoplesjewellers.com.

Signet Jewelers To Acquire Zale Corp.

Mike Barnes, Signet CEO, will lead the combined companies.

In a surprise announcement two of the largest retailers in the US have agreed to become one company. 

Signet Jewelers Limited, the largest specialty retail jeweler in the US and the UK, and Zale Corporation, a leading specialty retailer of fine jewelry in North America, said Wednesday that they have entered into a definitive agreement for Signet to acquire all of the issued and outstanding stock of Zale for $21 per share in cash, or $690 million. Including debt, the deal values Zale at $1.4 billion. 

The transaction brings together two of today's leading jewelry retailers with six of the most recognizable brands across four countries. The combined company will have approximately 3,500 retail locations in the US, Canada, Puerto Rico and the UK with combined sales of $6.2 billion “and enhanced operating capabilities expected to generate approximately $100 million in annual synergies within three fiscal years,” the two companies said in a joint statement released Wednesday morning. 

Mike Barnes, Signet CEO  will hold the same position in the combined company, according to the statement. Theo Killion, Zale CEO, will continue to operate the Zale portion of the business and report to Barnes.

"This transformational acquisition further diversifies our businesses and extends our international footprint, opening the door to greater growth and innovation across the enterprise," Barnes said. "The addition of Zale to the Signet family is consistent with our long-term growth strategy and leverages our combined operating expertise to create better choices for our customers, new opportunities for our employees, and makes us a more attractive partner to our vendors. In addition, it allows us to better optimize our balance sheet, creating long-term value for our shareholders. We are excited about the prospects for the combined company and the many opportunities that this creates for our future.”

Killion added, "Having successfully completed our multi-year turnaround program to return to profitability, Signet's operating strengths will enable us to accelerate Zale's performance improvement for the benefit of our current and future guests."

Signet's offer represents a premium of 41 percent over Zale's closing price as of February 18, according to the statement. It represents 7.4 times the EBITDA value over a 12-month period. As part of the transaction, Signet has entered into a voting and support agreement with Golden Gate Capital, the beneficial owner of approximately 22 percent of Zale's common stock. The transaction is expected to be high single-digit percentage accretive to earnings in the first full fiscal year after the close of the transaction, excluding acquisition accounting adjustments and one-time transaction costs.

The acquisition is expected to be financed through bank debt, other debt financing and the securitization of a significant portion of Signet's accounts receivable portfolio.

Signet has 1,400 retail locations that operate under the brands Kay Jewelers, Jared The Galleria Of Jewelry and regional brands. Signet's UK division operates approximately 500 stores primarily under the brands of H.Samuel and Ernest Jones.

Zale Corp. has 1,680 retail locations in the US, Canada and Puerto Rico. Its brands include Zales Jewelers, Zales Outlet, Gordon's Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda.

The transaction is subject to Zale stockholder approval, certain regulatory approvals and customary closing conditions.

J.P. Morgan Securities LLC acted as exclusive financial advisor and provided a fairness opinion to the board of directors of Signet and J.P. Morgan Chase Bank, N.A. committed to provide bridge financing for the transaction. Weil, Gotshal & Manges LLP acted as legal counsel to Signet in connection with the transaction. BofA Merrill Lynch acted as exclusive financial advisor and Cravath, Swaine & Moore LLP acted as legal counsel to Zale in connection with the transaction.

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Signet Jewelers Becomes Sponsor’s D.E.F. ‘Diamonds in the Sky’ Gala

Signet Jewelers Ltd., the largest specialty jewelry retailer in the US and UK, has become the first “Premier Presenting Sponsor” of the “Diamonds in the Sky” Gala Event, hosted by the Diamond Empowerment Fund (D.E.F).

The event will be held on May 29th at the Four Seasons Hotel in Las Vegas. D.E.F. is a global non-profit organization that raises money to fund education initiatives in diamond-producing nations. It was co-founded by business magnate Russell Simmons and leaders in the diamond industry in 2007. Signet Jewelers is best-known in the US as the owners of Kay Jewelers and Jared The Galleria Of Jewelry retail jewelry chains.

The event will bring a mix of the international diamond jewelry industry representatives, government officials from diamond producing nations, dignitaries and celebrities from fashion and entertainment. The proceeds will benefit D.E.F’s ‘Diamonds Do Good’ mission of providing higher education scholarships for youth from diamond producing countries. 

Presentation of the Diamond Empowerment Fund 2014 Global Diamond Industry Achievement Award will be made to Botswana President Ian Khama in recognition of their global leadership and contributions to democracy, sustainable economic development and the growth and expansion of the international diamond industry. 

“We are thrilled to congratulate Signet as the first Premier Presenting Sponsor for D.E.F on this occasion,” said Phyllis Bergman, president of D.E.F’s board of directors. “We encourage other industry leaders to consider sponsorship opportunities of this important event which celebrates the good diamonds do.” 

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2013 Holiday Sales Mostly Positive at Tiffany, Signet, Zale Corp.

The three largest jewelry retailers performed well enough during what was described as a challenging holiday sales period. 

Signet Jewelers, Tiffany & Co. and Zale Corp. experienced a November-December sales period that saw more competition for fewer shoppers. However, each company employed strategies that allowed them to make the most of the holiday season. 


Signet Jewelers
The largest specialty retailer in the US and UK, said that its US sales increased 7.9 percent year-over-year for the eight-week period ended December 28 to $1.07 billion. Same store sales for the period rose by 4.9 percent. However, the company did note that “additional discounting was necessary” in a competitive environment.

Sales at Kay Jewelers and Jared The Galleria Of Jewelry, its largest retail chains, rose 8.9 percent to $674.8 and 11.6 percent to $312.5 million, respectively, while sales at its regional brands fell 9.2 percent to $85.4 million.

Same store sales at Kay and Jared both increased 5.6 percent, while its regional brand holdings fell 2.3 percent for the period. 

“The US holiday season was highlighted by a strong November and a strong finish to December,” said Mike Barnes, Signet CEO. “However, additional discounting was necessary in a highly promotional retail environment that included challenging customer traffic trends and lower than anticipated commodity cost savings. We believe these factors will result in lower than expected gross margins and profitability versus our original expectations.”

In Signet’s UK division, which accounts for 19 percent of the company’s total revenues, sales for the eight-week holiday period increased 6.6 percent to $203.6 million year-over-year. Same store sales in the UK were up 5.2 percent.

Overall sales for Signet Jewelers In the eight-week period ended December 28, increased 7.7 percent to $1.27 billion. Same store sales increased 5 percent “driven by balanced strength across a variety of brands and categories.” 

Signet operates more than 1,400 stores in the US and 500 stores in the UK.

In addition, consolidated eCommerce sales increased 27.2 percent for the period, with a 24.8 percent increase in the US and a 37.5 percent increase in the UK.


Tiffany & Co.
The international luxury retail jeweler said Friday that total sales in the Americas region (which largely reflects US sales) rose 6 percent to $550 million for the holiday period ended December 31. On a constant-exchange-rate basis, total sales increased 7 percent while same store sales rose 7 percent due to what the company describes as “broad-based sales growth across most of the region.” The company operates 121 stores in the Americas.

The company reported that worldwide net sales for the period rose 4 percent to $1.03 billion. On a constant-exchange-rate basis worldwide net sales increased 8 percent due to growth in all regions. Same store sales increased 6 percent. 

“Tiffany enjoyed a good holiday season with overall sales results in line with our expectation, and we were pleased to see growth across our fine and statement, engagement and fashion jewelry categories,” said Michael J. Kowalski, Tiffany chairman and CEO.


Zale Corp.
Meanwhile, Zale Corp. reported same store sales for the holiday period increased 2 percent at constant exchange rates, or 0.7 percent on a US dollar reported basis led by a 3.5 percent rise in US same-store sales. 

Overall, the specialty retailer reported a 2 percent drop in holiday sales to $556 million, saying it is due to a closing of 91 stores during the year and a decline in the Canadian exchange rate. 

The Dallas-based company currently operates 1,064 fine jewelry stores and 630 kiosks in the United States, Canada and Puerto Rico, with the US being, by far, its largest market. 

The company’s US fine jewelry brands, consisting of Zales Jewelers, Zales Outlet and Gordon’s Jewelers, posted a same store sales increase of 3.5 percent. This increase follows a 2.2 percent rise in the same period last year.

Canadian fine jewelry brands, consisting of Peoples Jewellers and Mappins Jewellers, posted a same store sales increase of 0.5 percent at constant exchange rates, following a decline of 0.7 percent in the same period last year. On a US dollar reported basis, same store sales decreased 5.9 percent, following a 2.7 percent increase in the same period last year.

Piercing Pagoda, Zale Corp.’s kiosk jewelry business, posted a same store sales decline of 5.1 percent. In the same period last year, same store sales rose 1.7 percent.

“During the holiday period, we maintained our focus on increasing exclusive product penetration, driving gross margin improvement and building our core national brands,” said Theo Killion, Zale Corp. CEO. “We executed a solid holiday season despite a challenging retail environment.”

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US Sales Remain Strong At Signet Jewelers While UK Sales Disappoint

Signet Jewelers, the largest specialty retail jeweler in the US and the UK, said Thursday that second-quarter year-over-year sales increased 3.1 percent to $880.2 million. Same store sales for the period increased 3.6 percent year-over-year while eCommerce sales grew 7 percent to $31.2 million.

This was offset by a 1.2 percent decline in net income to $67.4 million. During a conference call Thursday, Mike Barnes, Signet CEO, said the decline was primarily due to the costs associated with the acquisition of the Ultra outlet jewelry store chain and the conversion of many of them to Zale Outlet stores, and lower gross margins compared to other Signet holdings. Without Ultra, earnings per share were up 5.9 percent.

In the company’s US division, which now accounts for nearly 85 percent of total sales for the company, sales increased 5.6 percent to $741.1 million. Same store sales increased 4.9 percent for the period. Sales increases were driven by strength in bridal, colored diamonds and watches. Signet owns 1,449 jewelry retail stores that operate under the brand-names Kay, Jared, Kay Outlet stores, Ultra and stores and some regional brands.

Kay and Jared experienced increases in both transaction counts and average transaction value. Meanwhile, eCommerce sales increased 36 percent to $25.3 million.

In the UK division, total sales declined 8.5 percent to $139.1 million in the second quarter. Same store sales decreased 2.4 percent. The company said the sales decline was primarily due to a same store sales decrease of $3.4 million, the impact of closed stores of $5.6 million and currency fluctuation of $3.9 million. Signet owns 500 retail stores that operate under the H.Samuel and Ernest Jones names.

The company said that at Ernest Jones, the number of transactions increased driven primarily by strength in branded bridal and watches, excluding Rolex, and the average transaction value was lower, primarily due to the impact from Rolex being offered in fewer stores. In H.Samuel, the number of transactions declined, primarily due to store closures and lower traffic. This resulted in lower sales across many merchandise categories, partly offset by strength in branded bridal products. Sales in both businesses were impacted by lower bead transactions. UK eCommerce sales in the UK increased 5.4 percent to $5.9 million, which include 45 percent coming to the websites through mobile devices, Barnes said.

Barnes noted during the conference call that Signet is in the process of updating its websites and mobile presence to take advantage of the increased traffic.

Other second quarter highlights:

* Gross margin declined, falling to $309.7 million or 35.2 percent of sales, compared to $311.2 million or 36.4 percent of sales in the second quarter fiscal 2013. The includes the results for Ultra increased gross margin dollars by $5.7 million; however, it reduced the consolidated gross margin rate by 50 basis points and the US gross margin rate by 70 basis points. The Ultra gross margin is lower than the core US business due to lower Ultra store productivity and the impact of the Ultra integration.

* Gross margin dollars in the US increased by $1.3 million compared to second quarter of fiscal 2013, reflecting higher sales offset by a gross margin decrease of 180 basis points. The company said the lower gross margin was primarily attributed to a gross merchandise margin decrease by 50 basis points, attributed to Ultra; and store occupancy and operating costs deleveraged by 70 basis points, of which 40 basis points was due to Ultra. The remaining 30 basis point change was due to the increase of new store openings.

* The US net bad debt ratio increased to 4.9 percent of sales compared to 4.5 percent of sales in prior year second quarter. The increase in the ratio was primarily due to the growth in the outstanding receivable balance. In addition, the US division experienced a “slight decline in collection efficiency” and a change in the credit mix. In the UK, gross margin dollars decreased $2.8 million, primarily reflecting the impact of decreased sales and currency fluctuation offset by a gross margin rate increase of 40 basis points.
.
* Selling, general and administrative expenses increased 4.2 percent to $250.5 million. As a percentage of sales, SGA increased by 40 basis points to 28.5 percent. This includes the results for Ultra, which increased SGA by $13.5 million and increased the consolidated SGA rate by 70 basis points. The company said Ultra’s SGA is expected to decline as the final steps of the integration are completed.

* Operating income fell 4.9 percent to $105.5 million. Operating margin declined 100 basis points to 12 percent.

* The US division’s operating income including Ultra declined 4.9 percent to $111.5.

* Operating margin for the US division including Ultra was 15 percent, compared with 16.7 percent in fiscal 2013, down 170 basis points. Excluding Ultra, the US division’s operating income was $119.3 or 16.8 percent of sales, up 10 basis points.

In its guidance, the company said it expects same store sales to rise in the low-single digit for the third quarter.

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Signet Replaces CEO for UK Division

Signet Jewelers said Tuesday that Rob Anderson, CEO of Signet's UK division, will leave the company at the end of July. He will be replaced by Sebastian Hobbs who has been promoted to the new position of managing director for the UK division, effective immediately. Hobbs will report to Mike Barnes, Signet CEO.

The Bermuda-based company is the largest specialty retail jeweler in the US and UK with approximately 1,952 stores (1,449 in the US and 503 in the UK). Its retail chains in the US include Kay, Jared and Ultra Diamonds. In the UK, it owns and operates the H.Samuel and Ernest Jones jewelry chains.

“Seb has made important contributions to our UK division and we believe his experience in UK retailing and strategy make him a perfect fit for this role,” Barnes said.

Hobbs joined Signet's UK division as commercial director in March 2011. From November 2006 till March 2011, he was commercial director of Blacks Leisure Group. Prior to this, he was trading controller for WH Smith, a retail consultant for KPMG, and held management positions at Mothercare and British Home Stores.

Signet’s UK division has been struggling since the financial crisis. In its 2013 fiscal year, the division reported that sales fell 0.8 percent to $709.5 million. Same store sales increased 0.3 percent compared to an increase of 0.9 percent in Fiscal 2012. Sales performance was primarily attributed to lower traffic particularly in the fourth quarter.

By contrast, US division sales for the 2013 fiscal year increased 7.9 percent to $3.27 billion. Same store sales increased 4 percent for the year compared to an increase of 11.1 percent in Fiscal 2012.

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U.S. and E-Commerce Businesses Fuel 10.4% Jump in Signet’s Q1 Sales

Signet Jewelers Ltd., the largest specialty retail jeweler in the U.S. and the U.K., said first quarter sales increased 10.4% year-over-year to $993.6 million. Same store sales increased 6.4% compared to a rise of 1.2% for the same period in the previous year. E-Commerce sales rose 40.7% to $31.1 million.

Operating income increased 10.4% to $142.8 million and diluted earnings per share rose 17% to $1.13 for the company that owns the Kay, Jared and Ultra jewelry retail chains in the U.S. and the H.Samuel and Ernest Jones jewelry retail chains in the U.K.

The U.S. division, which accounts for approximately 86 percent of total company sales, again was the driver in the strong performance. Total U.S. sales increased 14.3% to $858.6 million. Same store sales increased 8.1% compared to an increase of 1.2% for the period. The increases were driven by broad based strength across all merchandise categories in their Kay and Jared jewelry chains, as well as its recent acquisition of the Ultra jewelry store chain. E-Commerce sales increased 48% to $25.6 million.

“We were very pleased with our results throughout the quarter, including Valentine’s Day and the run up to Mother’s Day,” said Mike Barnes, Signet CEO.

The UK division, which accounts for approximately 14 percent of total company sales, reported weak results. Total sales fell 9.1% to $135. Same store sales fell 2.3% compared to an increase of 1.2% in the first quarter Fiscal 2013. The company said the sales decline was due to a same store sales decrease of $3.1 million primarily in H.Samuel, the impact of closed stores of $4.8 million, and currency fluctuation of $5.6 million. In Ernest Jones, the number of transactions increased and there was strength in the bridal business and watches (excluding Rolex, which is being offered in fewer stores in the UK). In H.Samuel, the number of transactions declined, resulting in lower sales across most merchandise categories. E-Commerce was a bright spot, increasing 14.5% to $5.5 million.

In its guidance, Signet says it expects the shift of Mother’s Day sales this year partly into the first quarter to impact second quarter sales and earnings performance. In addition, integration costs and the seasonality of the company’s newly acquired Ultra Stores are expected to dilute profits. The company expects Ultra to be a positive contributor to the company’s bottom line by the fourth quarter.

The company also said it plans to open 70 to 80 Kay and Jared stores by the end of the fiscal year.
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From Adversary to Partner, Terry Burman Named Chairman of Zale Corp.

Terry Burman

Zale Corp.on Wednesday made a surprise announcement that Terry Burman was named board chairman of the Dallas-based jeweler, whose retail brands include Zales Jewelers, Zales Outlet and Gordon's Jewelers. Burman was the highly successful chief executive officer of Signet Jewelers Ltd. from 2000 till 2011, Zale Corp.’s main rival.

Burman replaces John B. Lowe, Jr., who has served as chairman for the past five years. Lowe will remain on the board, the company said. The announcement overshadowed its third quarter earnings report.

Burman, a 30-year veteran of the jewelry industry, joined Signet in 1995 as the chairman and CEO of Sterling Jewelers, Inc., the U.S. division of Signet and Zale Corp.’s main rival. Sterling is the largest specialty retail jeweler in the United States with more than 1,300 stores located in 50 states, including national chains Kay Jewelers and Jared the Galleria of Jewelry. Signet also is the largest retail jeweler in the United Kingdom.

Under Burman’s leadership Sterling and then Signet experienced robust growth during the high-growth economy of the 1990s and the early 2000s and even through the economic recession and sluggish economy since 2008. Meanwhile, Zale Corp., suffered during the economic downturn under several leadership and ownership changes closing more than 100 underperforming stores.

Before joining Signet, Burman held executive positions, including president and CEO of Barry’s Jewelers, Inc., which now does business as Samuels Jewelers. He serves on the boards of Yankee Candle Company, Inc. and Tuesday Morning Corp. He also serves on St. Jude Children’s Research Hospital Board of Governors. He has received numerous jewelry industry awards, including the American Gem Society Lifetime Achievement Award in 2010 and is the former chairman of Jewelers of America.

“Terry’s track record and industry knowledge make him uniquely qualified to contribute to Zale as we execute our plans for long term growth and shareholder value,” said Theo Killion, Zale Corp. CEO.

“I am delighted to assume the role of chairman of the board at Zale at such an important point in their turnaround program,” Burman said. “I am looking forward to working with Zale’s management and board to refine the company’s strategy and priorities to drive profitable growth and create shareholder value.”

Zale Corp. is a leading specialty retailer of diamond and other jewelry products in North America, operating approximately 1,710 retail locations throughout the United States, Canada and Puerto Rico, as well as online. Zale Corp.'s brands include Zales Jewelers, Zales Outlet, Gordon's Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Zale also operates online at www.zales.com, www.zalesoutlet.com, www.gordonsjewelers.com, www.peoplesjewellers.com and www.pagoda.com. 

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Another Strong Year for Signet Jewelers

Signet Jewelers, the largest specialty retail jeweler in the U.S. and U.K., continues to benefit from strong retail sales in U.S., which more than offset weaker figures in the U.K.

The Bermuda-based company said Thursday that fourth quarter sales increased 11.8 percent, year-over-year, to $1.51 billion. Same store sales for the period ended Feb. 2, increased 3.5 percent compared to an increase of 6.9 percent in the prior fiscal year. E-commerce sales increased 46.9 percent to $63.9 million.

In its U.S. division sales for the fourth quarter increased 14.2 percent to $1.24 billion. Same store sales increased 4.9 percent compared to an increase of 8.3% in the fourth quarter Fiscal 2012. Sales increases were driven by broad based strength across most merchandise categories in both Kay and Jared retail chains and its acquisition of the Ultra Diamonds retail chain, the fifth largest in the U.S.

In its U.K. division total sales were up 1.8 percent to $268.4 million (fourth quarter Fiscal 2012: $263.7 million). Same store sales fell 1.9 percent compared to an increase of 1.7 percent in the fourth quarter Fiscal 2012. Sales performance was primarily attributed to lower store traffic and increased customer purchases of promotional merchandise, which impacted sales and gross margin.

In Fiscal 2013, Signet's total sales increased 6.2 percent to $3.98 billion. Same store sales were up 3.3 percent compared to an increase of 9 percent in Fiscal 2012. E-commerce sales increased 40.6 percent to $129.8 million.

In the US division total sales for the 2013 fiscal year increased 7.9 percent to $3.27 billion. Same store sales increased 4 percent for the year compared to an increase of 11.1 percent in Fiscal 2012. Sales increases were driven by broad based strength across most merchandise categories in both Kay and Jared, as well as the Ultra acquisition.

The number of merchandise transactions increased in Kay and Jared, the company said. Average merchandise transaction values were up in Kay stores due to changes in sales mix and down in Jared stores due primarily to the discontinuation of Rolex watches. E-commerce sales were $101.4 million compared to $68.5 million in Fiscal 2012, up $32.9 million or 48 percent.

In the U.K. division total sales fell 0.8 percent to $709.5 million. Same store sales increased 0.3 percent compared to an increase of 0.9 percent in Fiscal 2012. Sales performance was primarily attributed to lower traffic particularly in the fourth quarter.

In its guidance the company, which trade on the NYSE, said expectations are for same store sales in the first quarter to be up 5 to 7 percent.

“Signet had an excellent Fiscal 2013 with a 3.3% increase in same store sales and a 16.6 percent increase in earnings per share,” said Mike Barnes, Signet CEO. “The acquisition of Ultra, our share repurchase program and the increase in our quarterly dividend demonstrate our ability to capitalize on our excellent balance sheet to provide for our long-term growth and increase value for our shareholders.”

He added, “We are pleased with our progress quarter-to-date and expect to achieve our goals for the first quarter…. We will continue to advance our expansion goals as we integrate our recently acquired Ultra stores, execute on our multi-channel growth initiatives and expand our store base.”

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Signet Jewelers Holiday Sales Up 7.1%, Same-Store Sales Up 3.3%

Kay Jewelers, one of the U.S. brands
owned by Signet.

Signet Jewelers Ltd., the largest specialty retail jeweler in the U.S. and U.K., said Tuesday that sales for the November-December holiday period rose 7.1 percent to $1.23 billion. Same store sales were up 3.3 percent for the nine-week period.

Strong sales in the U.S. overcame a decline in sales for the company’s U.K. stores. Consolidated e-commerce sales increased by 39 percent, comprised of a 49 percent increase in the U.S. and an 8 percent increase in the U.K. Holiday sales for 2012 did not quite reach the level of growth that the jeweler saw in 2011, which was 7.5 percent.

“We saw particularly strong performance in the weeks and days leading up to Christmas,” said Mike Barnes, Signet CEO. “Business trends continue to be encouraging in the U.S. and have improved in the U.K. after the holiday season.”

The Bermuda-based jewelry retailer owns and operates Kay Jewelers; Jared, the Galleria of Jewelry; and a number of regional brands in the U.S. and H.Samuel and Ernest Jones jewelers in the U.K.

The company’s U.S. division saw a year-over-year sales increase of 9.9 percent to just over $1 billion, compared to an increase of 9.2 percent in the comparable nine weeks. Same store sales for the period increased 4.7 percent led by both Kay and Jared, compared to an increase of 9.2 percent in the comparable nine weeks. The total sales figure for 2012 includes $37 million from the Chicago-based Ultra Stores retail chain, which Signet acquired in October.
 
“In the U.S. we experienced broad based strength across our merchandise offerings led by our initiatives in bridal, branded and exclusive merchandise, colored diamonds, fashion jewelry and watches,” Barnes said.

Holiday sales in the company’s U.K. division fell by 5 percent to $203.4 million, compared to an increase of 0.9 percent in the comparable nine weeks. Same store sales in the U.K. were down 2.6 percent compared to an increase of 1.8 percent in the comparable nine weeks.

“In the UK watches and branded jewelry were the strongest performers,” Barnes said.

In its outlook, Signet said diluted earnings per share for the fourth quarter are projected at $2.05 to $2.10. Diluted earnings per share for the 53 weeks ending Feb. 2, 2013, are projected at $4.28 to $4.33.

Capital spending for Fiscal 2013 is anticipated to be $138 million to $142 million reflecting current estimates of project timing. In addition to the Ultra Stores, Inc acquisition. Signet says it anticipates 48 new US-based stores for the year.

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The Jewelry Industry is Better Prepared to Handle a Downturn

The opening day crowd during the 2011 JCK Las Vegas tradeshow held at Mandalay Bay. Photo credit: Anthony DeMarco

Not since 2009 has the global economy and the jewelry industry’s place in it been so unstable. This comes as the international jewelry industry descends on Las Vegas for a series of tradeshows beginning Monday (led by JCK Las Vegas at Mandalay Bay and The Couture Show at the Wynn Las Vegas) where retailers will purchase their inventory for the all-important holiday season. It’s one of the largest jewelry trade events on the global calendar and it will be a real test on whether the U.S. jewelry industry can withstand the latest onslaught of mixed economic news.

I think the jewelry industry will prevail. The industry itself has done little to exacerbate the fragile global economic situation. In fact, it has performed admirably during these difficult economic times—outside of the diamond industry with its mishandling of the Zimbabwe human rights issue and now diamond grading scandals at two labs. 

After the contraction of the U.S. jewelry industry in 2009, it has been posting mostly positive numbers and showing consistent, incremental growth. Unlike the banking industry, it has learned from its mistakes. The jewelry industry is not as leveraged as it was in 2008. It is doing better at using the Internet and social media instead of treating it as the enemy. Creativity has taken over as well. As the cost of materials increased, designers and manufacturers have created objects of adornment using more color, a variety of materials and high-quality craftsmanship. The jewelry industry as a whole is a smarter and more humble industry than it was prior to 2008.

However, it must get past an economic situation that is again rising to a boil led by two factors that just won’t go away: Wall Street’s reckless behavior and its defiant stance against any regulation; and the Euro crisis.

The Facebook IPO debacle managed by Morgan Stanley and JPMorgan Chase’s $2 billion-plus trading loss by taking large positions in credit default swaps show that Wall Street has learned nothing from the 2008 financial crisis that nearly took down the world economy.

Meanwhile, the end of the Euro or at least a serious contraction of the European Union now seems a possibility. Greece is on the brink of outright rejecting the monetary union and other countries are saddled with outrageous debt that member countries seem unable or unwilling to resolve. There are an endless number of theories as to what will happen if the Union disbands or shrinks, which tells me that no one really knows what will happen. But everyone in Europe seems to be scared.

The jewelry industry has its own challenges and victories, some of which were revealed this week. Among them:

* Tiffany & Co., the luxury retailer jeweler that has performed like a juggernaut throughout this recession, downgraded its outlook Thursday based on a softening of sales in the U.S. and abroad.

* Meanwhile, it’s the mid-market jewelers that are showing resiliency. Signet Jewelers, the largest specialty retail jeweler in the U.S. and U.K., whose brands include Kay and Jared, reported modest growth in the first quarter Thursday (sales up 1.4 and comps up 1.2 percent). Zale Corp., the long-struggling North American specialty retail jeweler, showed significant growth in its first quarter report Wednesday (8 percent increase in sales and comps).

* Online jewelry and diamond retailer, Blue Nile, reported a 3.6 percent first quarter increase in sales. However, lower markups led to a 9.7 percent decline in gross profits.

* The Swiss watch industry, which appeared invincible throughout the recession, is reporting that its phenomenal growth is slowing to just robust levels. Watch exports increased 9 percent in April, down from 16.1 percent for the first four months of the year, according to the Swiss Federal Customs Office.

* However, the large luxury conglomerates are still poised for strong growth throughout the world. For example, LVMH reported that its Watch & Jewellery division sales increased by 141 percent increase, year-over-year, to $826.6 million. This is misleading as LVMH acquired Italian luxury jewelry house, Bulgari, in March 2011. Excluding the Bulgari acquisition, sales increased 17 percent. Richemont, reported that jewelry and watch sales rose 32 percent for the year, with overall sales in the Americas up 26 percent.

Despite the uncertainty, I expect to see a positive environment and exciting new jewelry designs at the tradeshows. Most importantly, I anticipate business to be strong. Unlike 2008, the industry is better prepared today to meet these challenges.

Signet Jewelers Sales Up 1.4%; Comps Up 1.2%; Calendar Shift Affects Sales

Signet Jewelers Ltd., the largest specialty retail jeweler in the U.S. and U.K., said Thursday that sales for the first quarter increased 1.4 percent to $900 million. Same store sales for the period, ended April 28, increased 1.2 percent. The company said a calendar shift due to a late Mother’s Day adversely impacted sales by an estimated $32 million or 370 basis points.

The Bermuda-based company reported that income before taxes rose 9.1 percent to $128.5 million and diluted earnings per share increased 10.3 percent to $0.96.

“We anticipated the impact of the Mother’s Day promotional calendar shift and managed our business accordingly,” said Mike Barnes, Signet CEO. “In the second quarter to date, which benefited from the calendar shift, our same store sales, including Mother’s Day, were up strong double-digits.”

The retailer said it provided guidance in the second quarter “due to the complexity of the calendar shift.” It expects same store sales in the second quarter to high single digit range and fully diluted earnings per share are expected to range from $0.78 - $0.84 based on an estimated 84 million weighted average shares outstanding.

In the company’s U.S. division, (which generally accounts for about 80 percent of the company’s total sales) sales increased 1.8 percent to $751.5 million. Same store sales were up 1.2 percent and were impacted by 440 basis points due to the calendar shift. Signet’s brands in the U.S. include Kay and Jared jewelry stores and several regional brands.

In the UK division, sales declined 0.8 percent to $148.5 million. Same store sales were up 1.2 percent (13 weeks ended April 30, 2011: 0.2%). Signet’s brands in the U.K. include H.Samuel and Ernest Jones.

Other financial highlights for the first quarter include:

* The gross margin was $353.7 million, representing 39.3 percent of sales.

* Gross margin in the U.S. increased $5.8 million compared to the first quarter of the prior year, driven by a favorable gross merchandise margin movement of 40 basis points, leverage on store occupancy expenses and increased income from credit related fees, partially offset by an impact of $4.7 million on the U.S. net bad debt expense, due to a change in the number of credit billing cycles included in the quarter.

* Gross margin in the UK was $1.8 million lower than that of the first quarter of the prior year, primarily as a result of an unfavorable foreign currency impact and a decline in gross merchandise margin of 170 basis points attributed to the level of promotional activity and merchandise mix, which were partially offset by lower store occupancy and store operating expenses.

* Selling, general and administrative expenses were $264.5 million, or 29.4 percent of sales.

* Other operating income, net, increased to $40.2 million, or 4.5 percent of sales.

* Net operating income was $129.4 million, up $10.7 million or 9 percent.

* In the US division, net operating income was $137.7 million, up $11.5 million or 9.1 percent.

* In the UK division, net operating loss was $3 million, up $2.8 million.

Signet Annual Sales Up 9%

Kay Jewelers, owned by Signet Jewelers

Signet Jewelers Ltd., the largest specialty retail jeweler in the U.S. and the U.K., reported that for its 2012 fiscal year, same store sales increased 9 percent, compared to an increase of 6.7 percent in fiscal 2011. Total sales increased 9.1 percent for the year to nearly $3.75 billion, compared to an increase 5 percent increase in fiscal 2011. E-commerce sales rose 36.5 percent for the period ended January 28 to $92.3 million.

Income before income taxes for fiscal 2012 increased 67.1 percent to $502.1 million. Diluted earnings per share rose 60.8 percent to $3.73. The Signet board declared an increased quarterly dividend of $0.12 per share, up 20 percent.

Sales in the U.S., which accounts for 81 percent of total group sales, increased 10.6 percent to $3.03 billion. Sales n the U.K., which accounts for 19 percent of total group sales, increased 3.2 percent to $715,100 million.

Same store sales in the U.S. rose 11.1 percent for the year and rose a 0.9 percent in the U.K. for the same period.

Signet operates approximately 1,853 specialty retail jewelry stores, including 1,318 stores in the U.S., under the store brands Kay Jewelers, Jared The Galleria Of Jewelry and a number of regional names. The company operates approximately 535 stores in the U.K., under the store brands H.Samuel, Ernest Jones and Leslie Davis.

“Fiscal 2012 was another outstanding year for Signet, said Mike Barnes, Signet CEO. “The increased quarterly dividend of $0.12 per share demonstrates the confidence the Board has in the strength of our business model and our ability to generate positive cash flow, while continuing to invest in, and support, our long term growth initiatives. We are pleased with our sales for Valentine’s Day and believe that Signet is well positioned for Fiscal 2013.”

There was some softness in the fourth quarter for the Bermuda-based company, when compared to the strong growth in the prior three quarters. Total sales increased 6.6 percent to $1.35 billion, with U.S. stores accounting for $1.09 billion in sales and the U.K. representing $263,700. Same store sales increased 6.9 percent for the period ended January 28 (U.S. 8.3 percent; U.K. 1.7 percent).

Income before income taxes increased nearly 52 percent for the quarter to $242.4 million and diluted earnings per share rose nearly 48 percent to $1.79.

Signet said it repurchased $11.8 million of its common shares in the fourth quarter of Fiscal 2012. A total of $288.2 million remained available for future repurchases under the program.

Signet Holiday Same Store Sales Up 7.8%

Kay Jewelers is operated by Signet Jewelers.

Signet Jewelers Ltd. said Tuesday that same-store sales for the nine-week holiday season grew by 7.8 percent, year-over-year.

The Bermuda-based company bills itself as the largest specialty retail jeweler in the U.S. and the U.K.,

In the U.S., which accounts for about 80 percent of total group sales, same-store sales increased 9.2 percent for the holiday period. The company operates Kay Jewelers, Jared The Galleria Of Jewelry and a number of regional brands.

In the U.K., which accounts for about 20 percent of total group sales, same-store sales rose by 1.8 percent for the period. Last season, same-store fell in the U.K. The company operates H.Samuel, Ernest Jones, and Leslie Davis retail chains.

Internet sales rose by 24 percent for the period, the company said during a conference call.

Based on the results, the company, which operates approximately 1,860 retail jewelry stores in the U.S. and U.K., now expects its income in fiscal 2012 to increase from 64 to 67 percent to $494 to $501 million.

Signet Sales and Same Store Sales Up Nearly 11%

Kay Jewelers is a top performer for Signet.

Signet Jewelers Ltd., the world’s largest specialty retailer of fine jewelry, said Tuesday that third quarter sales increased 10.7 percent, year-over-year, to $710.5 million, led by a 10.6 percent increase in same store sales. Income before taxes for the period, ended October 29, was $42.1 million, up from $12 million for the third quarter of the prior year.

“Our sustained positive performance is due to the excellent execution of our strategies by our team,’ said Mike Barnes, CEO of the Bermuda-based company, which is listed on the NYST. “We are pleased with the start of the fourth quarter, and with the majority of our sales ahead of us.”

The company, which operates approximately 1,860 retail jewelry stores in the U.S. and U.K., was led by the strength of U.S. operations, while its U.K. business sales were slightly down or flat, year-over-year.

The company’s U.S. division, which consists of about 1,324 stores and accounts for about 80 of annual sales, reported a 13.3 percent increase in sales for the quarter to $563 million. Same store sales increased by 13.9 percent compared to a rise of 9.7 percent for the same period of the prior year.

Its Kay brand reported a 13.8 percent increase in sales for the period to $314.3 million while same store sales rose by 13 percent.

Its higher end Jared brand reported an 18.4 increase in sales to $194.6 million with an 18.3 percent increase in same store sales. Jared average unit selling price and same store sales were favorably impacted by approximately $76 and 8.3 percent, respectively, as a result of a one-time watch promotion.

The company also operates several regional brands in the U.S., which in total reported a loss of 3.9 percent to $54.1 million. Same store sales increased 4.3 percent for the period.

Signet’s U.K. division, which consists of about 536 stores and accounts for about 20 percent of annual sales, reported a 1.9 percent increase in sales to $147.5 million. At constant exchange rates, sales were down 1.2 percent. Same store sales were down 0.5 percent, compared to a decline of 0.6 percent in the third quarter of Fiscal 2011.

Its H.Samuel brand reported a 3 percent increase in sales (0.2 percent at constant exchange rates) to 78.3 million for the period. Same store sales were flat.

Its Ernest Jones brand reported a loss of 0.6 percent (down 2.4 percent at constant exchange rates) to $69.2 million. Same store sales were down 1.1 percent for the period.

Signet Q2 Same Store Sales Up 10%, Total Sales Up 11%

Kay Jewelers brought in $367.5 million in the second quarter for its parent company, Signet Jewelers.

Signet Jewelers Ltd., the world’s largest specialty retail jeweler, reported that year-over-year same store sales increased 9.9 percent and total sales rose 10.8 percent to $797.6 million for the second quarter of 2011. Total income before taxes jumped 82.4 percent to $99.8 million for the period ended July 30. Net income for the period increased 71.3 percent to $66.3 million.

The Hamilton, Bermuda-based company owns some of the largest jewelry retail chains in the U.S. and the U.K. that total 1,850 stores. Its shares trade on the New York Stock Exchange.

“I am pleased to announce record results for the second quarter reflecting the ongoing success of our strategies to present differentiated and sought-after product ranges, develop compelling branded offerings, provide a superior in-store customer experience and execute inspiring marketing campaigns,” said Mike Barnes, Signet CEO. “This powerful combination drove a … 430 basis point increase in operating margin and a 68.9 percent rise in diluted earnings per share as compared to the second quarter last year. During the quarter, our branded jewelry initiatives drove strong US same store sales performance and assisted our UK division’s sales to outperform a challenging retail marketplace. I would like to thank all team members at Signet who contributed to this great performance.”

In the U.S., which accounted for 80.6 percent of group sales in the second quarter, sales rose 11.3 percent to $643 million. Same store sales for the period increased 12.2 percent. In the U.S., Signet owns 1,314 stores that include Kay Jewelers, Jared The Galleria Of Jewelry, and a number of regional names. Kay Jewelers led the way with $367.5 million in the quarter. It’s average selling price per unit was $391. The more high-end Jared chain reported total sales of $213.8 million, with an average selling price per unit of $834.

In the U.K., which accounted for 19.4 percent of total sales for the second quarter, sales were basically flat, rising 0.1 percent to $154.6 million at constant exchange rates. At reported rates, sales increased 8.8 percent. Same store sales rose 1.4 percent for the period. In the U.K., Signet owns 536 stores, including the H.Samuel, Ernest Jones and Leslie Davis jewelry retail chains. H.Samuel reported $81.4 million for the period and an average unit selling price of 62 pounds ($101.50) sterling. Ernest Jones had sales of $73.2 million and an average unit selling price of 276 pounds ($451.60).

In a conference call Thursday morning, Barnes said website sales increased 50 percent and that it will be upgrading its websites prior to the holiday season. "That’s where the world is going now and we will focus on investing in it in both in the U.K. and the U.S. markets."

Free cash flow for the period was $153.8 million (26 weeks ended July 31, 2010: $240.2 million); non-GAAP measure, see Note 3. Free cash flow for Fiscal 2012 is estimated at $175 million to $225 million, an increase from the previous estimate of $150 million to $200 million. At July 30, 2011, Signet had no long term debt (July 31, 2010: $229.1 million) and cash and cash equivalents of $440.2 million (July 31, 2010: $485.4 million).

In the second quarter, Signet’s gross margin increased 24.3 percent to $294.8 million. Signet’s gross margin rate increased by 400 basis points to 37 percent, compared with a gross margin rate of 33 percent for the second quarter of 2010. The U.S. division’s gross merchandise margin was up 110 basis points, benefiting from selective price increases and reduced discounting, which more than offset higher commodity costs. The U.K. division’s gross merchandise margin declined by 40 basis points, with the impact of an increase in the cost of commodities and a higher value added tax rate, being largely offset by a number of price increases.

Signet Q1 Same Store Sales, Total Sales Up 10%

Signet Jewelers, the world’s largest specialty retail jeweler, reported strong sales results for the first quarter of FY 2012 led by a 10.2 percent increase in same store sales, compared to a rise of 5.8 percent for the first quarter of the prior year. Total sales for the period, ended April 30, also rose 10.2 percent to $887.3 million.

Operating income for the Bermuda-based company, which operates jewelry retail chains in the U.S. and U.K., improved by 310 basis points to 13.4 percent. As a result, income before income taxes and diluted earnings per share rose to $117.8 million, compared with $74.1 million during the prior fiscal year.  

“We are very pleased with our strong start to the year, leading to record results for the first quarter. Our performance was led by our U.S. division, with the U.K. division continuing to operate well in a challenging economy,” said Mike Barnes, Signet Jewellers CEO  “The strong sales momentum has continued into the start of the second quarter ... We remain well positioned to continue to increase sales productivity and achieve our financial objectives for this year.”

In the U.S., which accounted for 83.2 percent of total company sales for the period, sales increased 11.4 percent to $738 million. Same store sales rose 12.5 percent for the period. Signet operates 1,314 in the U.S., under the brands Kay Jewelers, Jared The Galleria Of Jewelry and a number of regional brands.

At Kay Jewelers, the company’s largest retail chain operation and the largest retail jewelry operation in the U.S., sales rose 13.4 percent to $435.4 million with same store sales up 13.9 percent. The average selling price was $360, a year-over increase of 11.8 percent. At Jared, total sales rose 12.7 percent to $227.8 million. Same store sales increased 11.8 percent for the period. The average selling price per unit for the period was $798, a 7.7 percent increase compared to the prior year.

In the U.K., which accounted for 16.8 percent of total company sales for the period, sales rose 4.5 percent to $149.3 million, mostly due to the strength of the British pound over the U.S. dollar. When the exchange rates were removed sales fell for the period by 1.3 percent. Same store sales rose 0.2 percent. Signet operates 538 stores in the U.K. under the brands H.Samuel, Ernest Jones and Leslie Davis.

 
On May 24, Signet, which trades on the New York Stock Exchange, entered into a $400 million senior unsecured multi-currency, five-year revolving credit facility agreement that will be used for working capital requirements and general corporate purposes. The new loan replaces an existing $300 million credit account entered in June 2008, which was due to expire in June 2013.

Signet operates approximately 1,852 specialty retail jewelry stores.

Signet 2011 Sales Up 5%

Mike Barnes, Signet CEO

Signet Jewelers Ltd., the world’s largest specialty retail jeweler, said Wednesday that same store sales rose 6.7 percent for fiscal 2011, ended Jan. 29. Total sales for the year rose 5 percent to $3.4 billion.

Income before taxes for the year increased 30.3 percent to $300.4 million. Adjusted income before taxes rose 51 percent to $347.9 million.

The Bermuda-based, New York Stock Exchange-listed company operates approximately 1,857 specialty retail jewelry stores in the U.S. and the U.K. Sales for its U.S. business (which accounts for nearly 80 percent of total revenues) increased 8 percent for the year to $2.74 billion, with same-store sales up nearly 9 percent.

In the U.K., it was a different story as sales fell 5.5 percent to less than $693.2 million, the company said. Same store sales fell 1.4 percent for the year.

“Fiscal 2011 was an outstanding year for Signet, said Mike Barnes, Signet CEO. “We believe that Signet is well positioned to gain profitable market share and improve operating margins as a result of our competitive strengths in the bridal category, the further development of brands that differentiate us from our competitors, our long term focus on best in class customer service, and traffic generating marketing campaigns that leverage our leading share of voice.”

This was Barnes first earnings report statement as Signet CEO. The former executive with accessories company Fossil took the helm at Signet at the end of January, following the retirement of Terry Burman, who headed the company for 10 years.

Fiscal 2012 is off to a strong start, particularly in the U.S., the company said. Same store sales in the first seven weeks are up by 8.5 percent, compared with the comparable period last year. The U.S. division increased by 11.4 percent and the U.K. division was down by 4.6 percent.

Signet operates approximately 1,317 stores in the U.S., where its store brands include Kay Jewelers, Jared The Galleria Of Jewelry and a number of regional names. Signet also operated 540 stores in the U.K., where its store brands are H.Samuel, Ernest Jones and Leslie Davis.

Signet, Zale Post Strong Holiday Sales Gains

Kay, the largest specialty retail jewelry brand in the US based on sales, is owned by Signet Jewelers.

The two largest jewelry chains in the U.S. both posted year-over-year gains for the nine-week holiday season, ended January 1.

Signet Jewelers Ltd., the world’s largest specialty retail jeweler, said Tuesday that U.S. sales increased by 11.7 percent for the period. The Bermuda-based company also has jewelry retail chains in the U.K. and that part of the business posted a 4.2 percent decline for the period, due to the negative impact of adverse winter weather (originally reported as a 4.2 percent increase, we regret the error).

Total holiday sales increased 8.1 percent with same store sales for the period up by 11.7 percent, following a 7.5 percent rise during the 2009 holiday season.

Signet operates 1,874 specialty retail jewelry stores including 1,330 stores in the U.S., where it owns stores under the Kay Jewelers, Jared The Galleria Of Jewelry and a number of regional names. The company also operated 544 stores in the UK, where it operates as H.Samuel, Ernest Jones and Leslie Davis.

Meanwhile, Zale Corp. said Tuesday that same store sales increased 8.5 percent for the holiday period of November and December 2010. At constant exchange rates (which excludes the effect of translating Canadian currency denominated sales into U.S. dollars), same store sales increased 7.6 period for the holiday selling period. Total revenues for the two-month period increased 8 percent to $533.1.

U.S. Fine Jewelry brands (which operate as Zales Jewelers, Zales Outlet and Gordon's Jewelers) had an increase in same store sales of 7.5 percent.

Canadian Fine Jewelry brands (consisting of Peoples Jewellers and Mappins Jewellers) had an increase in same store sales of 15.6 percent (up 10.2 percent at constant exchange rates).

Kiosk jewelry same store sales from its Piercing Pagoda business increased 4.2 percent.

“The Holiday sales results represent progress as we continue to stabilize the business and return to profitability,” said Theo Killion, Zale Corp. CEO. “The investments we've made in our field teams, the clarity of our marketing message and our back to basics merchandising strategy were validated by our guests during the most critical selling period of the year.”

Signet Names Michael Barnes New CEO

The world’s largest specialty retail jeweler will soon have new leadership.

Signet Jewelers Ltd. said Wednesday it has appointed Michael Barnes as chief executive officer beginning Jan. 30, 2011. Barnes, formally with Fossil Inc., will join Signet on December 1 as chief executive officer designate and will be based in Akron, Ohio. He succeeds Terry Burman who will retire Jan. 29, 2011.

Barnes had been president, chief operating officer and a director of Fossil. He has been with the global design, marketing and distribution company for 25 years, serving in several key management positions. He started with the Richardson, Texas-based company in its early days and was one of its initial employees. He was part of the management team that took Fossil public in 1993. Barnes announced his resignation from Fossil Wednesday.

“We are delighted to have recruited such a strong candidate as Mike to be Signet’s CEO,” said Sir Malcolm Williamson, Signet chairman. “Mike is a seasoned and accomplished manager who with his strategic and attentive outlook to operational details brings valuable experience to Signet. He will be an able successor to Terry Burman who has led Signet as CEO for the last ten years and who leaves a strong legacy.”

Signet, based in Hamilton, Bermuda, operates 1,893 stores, including1,345 stores in the U.S., where it trades as Kay Jewelers, Jared The Galleria Of Jewelry, and under a number of regional names. Signet also operates 548 stores in the U.K. division, where it trades as H.Samuel, Ernest Jones and Leslie Davis.