Signet Jewelers announced its results for the second quarter ended August 1, 2015. Consolidated results in prior year reflect the contribution of 26 fewer days year-over-year from the addition of Zale Corporation acquired on May 29, 2014.
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In addition, consolidated results reflect purchase accounting and transaction costs related to that acquisition.
Second quarter EPS was $0.78. EPS was unfavorably impacted by transaction costs principally due to the $34.2 million legal settlement of the Zale acquisition appraisal rights matters.
Second quarter adjusted EPS was $1.28 driven by stronger than expected business performance, a lower tax rate, and an operational change associated with extended service plans, which resulted in a change in revenue recognition.
Total sales were $1,410.6 million, up $184.7 million or 15.1%, compared to $1,225.9 million in the second quarter Fiscal 2015. Same store sales increased 4.2% compared to an increase of 4.8% in Q2 2015 driven by positive sales performance across all national store brands.
In the second quarter, an operational change related to the Sterling division's extended service plans (ESP) associated with ring sizing was made to further align Zale and Sterling ESP policies.
This change triggered a change in the revenue and expense recognition rates which favorably impacted Signet same store sales by 60 basis points. eCommerce sales in the second quarter were $65.9 millio, up $15.4 million or 30.5% compared to $50.5 million in the prior year second quarter.
Mark Light, chief executive officer, said, “Signet delivered a second quarter increase in same store sales of 4.2%, earnings per share of $0.78, and adjusted earnings per share of $1.28, a 19.6% increase. These results exceeded our same store sales and adjusted EPS guidance for the quarter.
"Results were driven by strong and consistent sales growth across all of our selling channels, as well as solid profitability and disciplined cost management across our organization. ■