Highlights                                            13 weeks                26 weeks                                                    to August 1, 2009    -- Same store sales                     down 5.3%              down 4.0%    -- Income before income taxes    $38.5m down 6.1%       $79.9m down 1.6%        (excluding fiscal 2009        non-recurring relisting costs)    -- Basic and diluted earnings       per share                     $0.32   up 39.1%       $0.63   up 18.9%     -- Further significant progress made towards achieving fiscal 2010(1)       financial objectives    -- Operational initiatives driving profitable market share gains in a       consolidating sector    -- Increased gross merchandise margin in US and UK    -- Free cash inflow(2) target increased by $100 million to $275 million       to $325 million for fiscal 2010    (1)  Fiscal 2009 is the year ended January 31, 2009 and fiscal 2010 is        the year ending January 30, 2010.   (2)  Cash inflow from operating activities less cash used in investing        activities and amendment fees.   

Terry Burman, Chief Executive, Signet Jewelers commented: "During the second quarter we made further significant progress toward achieving our strategic and financial objectives. In particular, the $100 million increase in the target for free cash flow demonstrates the strength of our business. In the current environment, the ability to generate profits and cash, maintain superior operating metrics, have a strong balance sheet and reliable medium term financing in place are significant competitive advantages within the specialty jewelry sector. They enable management to focus on reinforcing the competitive position of the business and to gain profitable market share, which will result in the business being well positioned for a recovery in the economy.

While in the short term, the consumer environment in both the US and the UK remains very uncertain, we are well advanced in our preparations to take advantage of our competitive strengths during the very important Holiday Season."

   Enquiries: Terry Burman, Chief Executive, Signet Jewelers  +1 441 296 5872              Walker Boyd, Finance Director, Signet Jewelers  +1 441 296 5872              Michael Henson, Taylor Rafferty                 +1 212 889 4350              Jonathan Glass, Brunswick                  +44 (0) 20 7404 5959  

Signet operated 1,952 specialty retail jewelry stores at August 1, 2009; these included 1,396 stores in the US, where the Group trades as "Kay Jewelers", "Jared The Galleria Of Jewelry" and under a number of regional names. At that date Signet operated 556 stores in the UK, where the Group trades as "H.Samuel", "Ernest Jones" and "Leslie Davis". Further information on Signet is available at http://www.signetjewelers.com/. See also http://www.kay.com/, http://www.jared.com/, http://www.hsamuel.co.uk/ and http://www.ernestjones.co.uk/.

Conference call

A conference call will take place for all interested parties today at 10.00 a.m. EDT (3.00 p.m. BST) with a simultaneous audio webcast and slide presentation on http://www.signetjewelers.com/. The slides are available to be downloaded from the website ahead of the conference call. The call details are:

   European dial-in:                   +44 (0)20 7806 1953   US dial-in:                         +1 718 354 1385    European replay until September 11: +44 (0)20 7806 1970   Access code: 5322040#    US replay until September 11:       +1 718 354 1112   Access code: 5322040#    Risk Factors   

This report includes statements which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, based upon management's beliefs as well as on assumptions made by and data currently available to management, appear in a number of places throughout this report and include statements regarding, among other things, our results of operation, financial condition, liquidity, prospects, growth, strategies and the industry in which Signet operates. Our use of the words 'expects,' 'intends,' 'anticipates,' 'estimates,' 'may,' 'forecast,' 'objective,' 'plan,' or 'target,' and other similar expressions are intended to identify forward-looking statements.

These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties, including but not limited to general economic conditions, the merchandising, pricing and inventory policies followed by Signet, the reputation of the Company and its brands, the level of competition in the jewelry sector, the price and availability of diamonds, gold and other precious metals, seasonality of Signet's business, and financial market risks.

For a discussion of these and other risks and uncertainties which could cause actual results to differ materially, see the "Risk Factors" section of the Company's fiscal 2009 annual report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 1, 2009 and other filings made by the Company with the Commission. Actual results may differ materially from those anticipated in such forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein may not be realized. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.

   Interim Management Report     GROUP   

During the second quarter Signet made good progress towards achieving its strategic and financial objectives for fiscal 2010. These are:

   Strategy   --  Enhance position as strongest middle market specialty retail jeweler   --  Focus on profit and cash flow maximization to further strengthen       balance sheet    --  Reduce business risk    Financial Objectives   --  $100 million US cost reduction program   --  Significant working capital reduction   --  Reduce capital expenditure by about 50%, to some $55 million    --  Revised target of $275 million to $325 million free cash inflow, up       from original target of $175 million to $225 million    Progress on 2010 financial objectives   

The expectation for gross merchandise margin in the US for fiscal 2010, subject to future movements in commodity costs, continues to be at least at the level of fiscal 2009. In the UK, it is anticipated that gross merchandising margin percentage will be better than originally forecast and is now expected to be a little below last year's level following the improvement achieved so far in fiscal 2010.

The US division remains on target to achieve $100 million of cost reductions (excluding inflation, net bad debt and volume related costs on sales above plan). A small amount of additional cost savings will be reinvested in national TV advertising during the forthcoming Holiday Season to provide a greater than planned level of support to Kay. Full year sterling costs in the UK are expected to be similar to last year.

Capital expenditure in the US and UK is expected to be about $40 million and $15 million respectively and remain consistent with the target for Group expenditures of $55 million.

The free cash flow target for fiscal 2010 is now expected to be between $275 million and $325 million compared with the range of $175 million to $225 million projected at the time of the fiscal 2009 results announcement. The increase in targeted free cash flow reflects the better than anticipated trading and a greater inflow from working capital, including a further $20 million planned benefit from inventory management.

13 weeks ended August 1, 2009

In the 13 weeks ended August 1, 2009 same store sales decreased by 5.3%. Total sales fell by 7.6% to $710.8 million (13 weeks to August 2, 2008: $768.9 million) reflecting an underlying decrease of 3.2% at constant exchange rates (see note 13). The components of the change in sales are set out below:

   Q2 change in sales                             US         UK      Group   ------------------                              %          %        %                                                 -----      -----    -----   Same store sales                              (5.5)      (4.3)    (5.3)   Change in store space                          1.5        3.9      2.1   ---------------------                         -----      -----    -----   Change in sales at constant exchange rates    (4.0)      (0.4)    (3.2)   Exchange translation                             -      (17.7)    (4.4)   --------------------                          -----      -----    -----   Change in total sales as reported             (4.0)     (18.1)    (7.6)   ---------------------------------             -----      -----    -----   

Operating income increased 24.3% to $46.6 million (13 weeks to August 2, 2008: $37.5 million), up by 23.0% at constant exchange rates (see note 13). This included the benefits of $6.0 million from a previously announced change in the US vacation policy and the charge in fiscal 2009 of $10.5 million of non-recurring relisting costs. Operating margin was 6.6% (13 weeks to August 2, 2008: 4.9%). The factors influencing the movement in operating margin are set out below:

   Change in operating margin                     US         UK      Group   --------------------------                      %          %        %                                                 -----      -----    -----   Q2 Fiscal 2009 operating margin                8.7        1.2      4.9   Relisting costs                                  -          -      1.3   ---------------                               -----      -----    -----   Q2 Fiscal 2009 operating margin before    relisting costs                               8.7        1.2      6.2   Gross merchandise margin movement              0.1        0.7      0.4   Expense leverage/(deleverage)                  0.4       (1.3)     0.1   Impact of new store square footage            (0.1)         -     (0.1)   ----------------------------------            -----      -----    -----   Q2 Fiscal 2010 operating margin                9.1        0.6      6.6   -------------------------------               -----      -----    -----   

Income before income taxes rose by 25.8% to $38.5 million (13 weeks to August 2, 2008: $30.6 million). Net income was $27.6 million (13 weeks to August 2, 2008: $19.7 million). Basic and diluted earnings per share were $0.32 (13 weeks to August 2, 2008: $0.23).

26 weeks ended August 1, 2009

In the 26 weeks ended August 1, 2009 same store sales decreased by 4.0%. Total sales fell by 7.4% to $1,473.4 million (26 weeks to August 2, 2008: $1,591.4 million) reflecting an underlying decrease of 2.2% at constant exchange rates (see note 13). The average US dollar rate was 1/$1.54 (26 weeks to August 2, 2008: 1/$1.98). The components of the change in sales are set out below:

   Year to date change in sales                   US         UK      Group   ----------------------------                    %          %        %                                                 -----      -----    -----   Same store sales                              (4.0)      (4.2)    (4.0)   Change in store space                          1.6        3.1      1.8   ---------------------                         -----      -----    -----   Change in sales at constant exchange rates    (2.4)      (1.1)    (2.2)   Exchange translation                             -      (22.0)    (5.2)   --------------------                          -----      -----    -----   Change in total sales as reported             (2.4)     (23.1)    (7.4)   ---------------------------------             -----      -----    -----   

Operating income increased 18.7% to $99.0 million (26 weeks to August 2, 2008: $83.4 million), up by 17.7% at constant exchange rates (see note 13). This included the benefits of $10.0 million from a previously announced change in US vacation policy and the charge in fiscal 2009 of $10.5 million of non-recurring relisting costs. Operating margin was 6.7% (26 weeks to August 2, 2008: 5.2%). The factors influencing the movement in operating margin are set out below:

   Change in operating margin                     US         UK      Group   --------------------------                      %          %        %                                                 -----      -----    -----   H1 Fiscal 2009 operating margin                8.0        1.5      5.2   Relisting costs                                  -          -      0.7   ---------------                               -----      -----    -----   H1 Fiscal 2009 operating margin before    relisting costs                               8.0        1.5      5.9   Gross merchandise margin movement              0.6        0.5      0.6   Expense leverage/(deleverage)                  0.6       (2.1)     0.3   Impact of new store square footage            (0.1)         -     (0.1)   ----------------------------------            -----      -----    -----   H1 Fiscal 2010 operating margin                9.1       (0.1)     6.7   -------------------------------               -----      -----    -----   

Income before income taxes rose by 13.0% to $79.9 million (26 weeks to August 2, 2008: $70.7 million). The tax rate was 32.5% (26 weeks to August 2, 2008: 35.8%) and net income increased by 18.7% to $53.9 million (26 weeks to August 2, 2008: $45.4 million). Basic and diluted earnings per share were $0.63 (26 weeks to August 2, 2009: $0.53).

Net debt and free cash flow

Net debt at August 1, 2009 was $200.5 million (August 2, 2008: $433.3 million). Group gearing (that is the ratio of net debt to shareholders' funds excluding goodwill) at August 1, 2009 was 11.8% (August 2, 2008: 25.4%). There was a $270.2 million reduction in net debt in the 26 weeks to August 1, 2009 rather than the normal seasonal increase (26 weeks to August 2, 2008: up $58.7 million) reflecting an inflow from tight management of working capital (operating assets and liabilities) of $172.7 million (26 weeks to August 2, 2008: $18.8 million), nil distribution to shareholders (26 weeks to August 2, 2008: $107.4 million) and increased cash flow from operations of $122.3 million (26 weeks to August 2, 2008: $97.8 million).

   OPERATING REVIEW    US division (circa 80% of annual sales)    13 weeks ended August 1, 2009  

Total sales were down by 4.0% at $552.5 million (13 weeks to August 2, 2008: $575.6 million). Same store sales decreased by 5.5%, reflecting a slight deterioration in the post Valentine's Day trend seen in the first quarter. The average unit selling price decreased by 5.7% in the mall brands and, on an underlying basis, by 11.6% in Jared, excluding the impact of a new merchandising program. Mall brands same store sales were broadly flat, however Jared continued to be adversely affected by the general weakness in expenditure among households with above average incomes. Differentiated merchandise ranges continued to be expanded and a number of new programs and designs have tested very well.

Operating income was little changed at $50.4 million (13 weeks to August 2, 2008: $50.2 million) including the benefit of $6.0 million from the change in vacation policy. Operating margin was 9.1% (13 weeks to August 2, 2008: 8.7%) reflecting management action to reduce costs (see table above for the main factors influencing operating margin). The division made further good progress towards achieving its fiscal 2010 target of reducing the underlying cost base by $100 million (excluding inflation, net bad debt and volume related costs on sales above plan), the reduction in the quarter being $17.5 million. Reflecting the economic environment, the net bad debt to total sales ratio was up by 110 basis points. Gross merchandise margin was up 10 basis points, benefitting from favorable changes in the sales mix, and lower diamond prices, offsetting the higher cost of gold.

26 weeks ended August 1, 2009

Total sales were down by 2.4% at $1,177.4 million (26 weeks to August 2, 2008: $1,206.7 million). Same store sales decreased by 4.0%. The average unit selling price decreased by 7.3% in the mall brands and, on an underlying basis, by 9.2% in Jared, excluding the impact of a new merchandising program.

Operating income was up by 10.2% at $106.8 million (26 weeks to August 2, 2008: $96.9 million) including the impact of $10.0 million from the change in vacation policy. Operating margin was 9.1% (26 weeks to August 2, 2008: 8.0%) reflecting management action to reduce costs and increased gross merchandise margin (see table above for the main factors influencing operating margin). The deterioration in net bad debt charge to 5.0% of total sales (26 weeks to August 2, 2008: 3.9%) was in line with the trend seen in recent quarters.

It is expected that in fiscal 2010 US net store square footage will decrease by approximately 2%, including the closure of about 75 mall brand stores as leases expire. The planned change in store numbers by format in fiscal 2010 is set out below:

                   Kay     Kay     Regionals  Jared(a)   Total  Net Square                   Mall  Off-mall                                Footage                                                                 Change                   ----  --------  ---------  --------   -----  ----------   January 2008    789     105       351        154      1,399     10%   Opened           27(b)   30         3         17         77   Closed          (21)     (4)      (50)(b)      -        (75)   ----------      ----  --------  ---------  --------   -----  ----------   January 2009    795     131       304        171      1,401      4%   Openings    (planned)        5(b)    3         1          7         16   Closures    (approx.)      (13)     (5)      (59)(b)      -        (77)   ----------      ----  --------  ---------  --------   -----  ----------   January 2010    (approx.)      787     129       246        178      1,340     (2)%   ----------      ----  --------  ---------  --------   -----  ----------    (a)  A Jared store is equivalent in size to just over four mall stores.   (b)  Includes 14 rebranded stores in fiscal 2009 and 2 in fiscal 2010.    UK Division (circa 20% of annual sales)    13 weeks ended August 1, 2009  

In the 13 weeks ended August 1, 2009 total sales at constant exchange rates were down 0.4% (see note 13) and on a reported basis sales declined by 18.1% to $158.3 million (13 weeks to August 2, 2008: $193.3 million). Same store sales were down by 4.3% (H.Samuel -2.5% and Ernest Jones -6.2%), an encouraging performance given the trading environment.

The diamond category continued to perform well in Ernest Jones, and gold participation was up in H.Samuel. The focus on differentiated merchandise and customer service remained priorities. The average unit selling price in H.Samuel was up 9.2% and in Ernest Jones by 4.7%.

Operating income was $1.0 million (13 weeks to August 2, 2008: $2.3 million). Tight control of costs and inventory was maintained, with gross merchandise margin increasing by 70 basis points (see table above for main factors influencing operating margin).

26 weeks ended August 1, 2009

In the 26 weeks ended August 1, 2009 total sales at constant exchange rates were down 1.1% (see note 13), on a reported basis sales declined by 23.1% to $296.0 million (26 weeks to August 2, 2008: $384.7 million). Same store sales were down by 4.2% (H.Samuel -2.2% and Ernest Jones -6.5%). There was an operating loss of $0.3 million (26 weeks to August 2, 2008: operating income $5.8 million), the sales deleverage being partly offset by an increase in gross merchandise margin (see table above for main factors influencing operating margin).

About 18 stores are expected to be refurbished or relocated this year (fiscal 2009: 46), the majority in the enhanced Ernest Jones format. One new store is planned to be opened (fiscal 2009: 9) with 10 closures (fiscal 2009: 14). At the year end, 345 H.Samuel (January 31, 2009: 352) and 204 Ernest Jones (January 31, 2009: 206) stores are planned to be operating.

Central costs, financing items and taxation

In the 13 weeks ended August 1, 2009 central costs were $4.8 million (13 weeks to August 2, 2008: $4.5 million, excluding $10.5 million of non-recurring costs relating to the move of the primary listing to the NYSE). In the 26 weeks ended August 1, 2009 central costs were $7.5 million (26 weeks to August 2, 2008: $8.8 million, excluding $10.5 million of relisting costs) reflecting the change in the average translation rate.

Financing costs rose to $8.1 million (13 weeks to August 2, 2008: $6.9 million), the increase being primarily due to increased costs on fixed rate borrowing and lower interest received on cash balances. In the 26 weeks ended August 1, 2009 financing costs rose to $19.1 million (26 weeks to August 2, 2008: $12.7 million), including refinancing costs of $3.4 million (26 weeks to August 2, 2008: nil).