Winning Strategies In the Face of Change

Business Improves, But Are Cost Reductions Slipping?
Despite specialty jewelry sales declining about 18% during the 2008 holiday season, there are early signs that the business may be improving.  For instance, Signet Jewelers Ltd hinted February 2009 sales had improved; saying “US, same store sales for the first seven weeks were down by 2.7% against the comparable period in fiscal 2009, with Valentine's Day trading stronger than the remainder of the period.”  That should be encouraging news to Signet employees and shareholders since better sales in combination with its cost reduction program mean both increased cash flow and higher profitability.  That’s assuming the company can actually decrease its expenses by $100 million as planned.  It’s good news for the jewelry industry too, but that good news may be over shadowed by the fact that some jewelry companies may be lagging behind in reducing costs...