(RTTNews) - Signet Jewelers Ltd (SIG: News , SIG.L), Tuesday reported a narrower loss for the third quarter, reflecting lower operating expenses that more than offset a decline in revenue. Further, the company said it expects higher reduction in net debt for the full year, compared to its original target.

The Hamilton, Bermuda-based specialty retail jeweler reported a net loss of $7 million or $0.08 per share, narrower than $15.1 million or $0.18 per share in the previous year. Results include foreign currency translation costs of $5.8 million, changes in fair value of derivative instruments of $5.4 million, actuarial gain of $1.2 million and deferred tax on items recognized in equity of $1.7 million.

Comprehensive loss for the quarter was $8.2 million, compared to $144.5 million a year earlier.

Total sales for the quarter declined 2.5% to $613.7 million from $629.3 million last year. Same store sales for the quarter was down 1.9%.

By geography, US sales declined 1.7% to $459.3 million from the previous year. Same store sales decreased 2.4% for the period, compared to a fall of 5.5% in the second quarter, with Jared showing some early signs of a slowing sales decline.

UK sales were $154.4 million, down 4.7% from last year. On constant exchange rates, sales were up 4.5%. Same store sales were down 0.2% for the quarter. The average unit selling price in H.Samuel was up 9.6% reflecting both merchandise mix changes and price increases. In Ernest Jones, average unit selling price was up 12%, due to the similar factors.

Cost of sales was $447.9 million, compared to $454.5 million a year ago. Gross margin declined to $165.8 million from $174.8 million a year earlier.
Selling, general and administrative expenses declined to $197.3 million from $217.3 million last year. Interest expense declined to $7.4 million from $10 million in the previous year.

Net financing costs declined to $7.4 million from $9.4 million, primarily due to the lower level of both fixed and variable rate borrowings.

For the nine-month period, net income increased to $46.9 million or $0.55 per share from $30.3 million or $0.35 per share in the same period of the previous year. Sales for the period declined to $2.09 billion from $2.22 billion a year ago.

In addition, the company now expects to achieve a reduction in net debt of between $300 million and $350 million this year. Previously, the company had debt reduction target in the range of $175 million to $225 million.

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