UPDATE 3-Signet posts loss but start of new yr "encouraging"
* Q4 loss $4.97/shr, including goodwill impairment charge
* To cut U.S. costs by $100 mln
* To reduce net debt by around $200 mln this fiscal yr
* Says new fiscal year off to "encouraging start"
* Shares up 10 pct (Adds analyst comment, byline; Updates stock price)
NEW YORK, March 25 (Reuters) - Signet Jewelers (SIG.N), the world's biggest specialty jeweler, reported a quarterly net loss on Wednesday versus a year-earlier profit, hurt by a one-time charge and a steep drop in sales during the key holiday shopping period.
But the company, which runs Kay Jewelers and Jared The Galleria of Jewelry stores in the United States, and Ernest Jones and H Samuel in Britain, said its new fiscal year was off to an "encouraging start."
To shore up business amid the uncertain environment, Signet said it will cut costs, delay new store openings and reduce its net debt by around $200 million this fiscal year.
But Terry Burman, Signet's group chief executive, said on a conference call that the retailer is better positioned than many of its competitors, and it will gain market share as the harsh climate forces others, like Fortunoff, to seek Chapter 11 bankruptcy protection or liquidate.
"We believe Signet will both survive the downturn, and emerge a stronger, long(er)-term winner, as weaker competitors fail and capacity shrinks," Investec Bank analyst David Jeary wrote in a research note.
Signet's shares rose $1.14, or 10 percent, to $12.42 in afternoon trading, while competitor Zale Corp (ZLC.N) gained 31 cents, or 19 percent, to $1.95.
Signet reported a loss of $424 million, or $4.97 per share, for the fourth quarter that ended Jan. 31, compared with a profit of $143 million, or $1.65 per share, a year earlier.
Results for the latest quarter included a $516.9 million goodwill impairment charge.
Sales fell nearly 19 percent to $1.12 billion.
CUTTING COSTS AMID UNCERTAIN ENVIRONMENT Continued...
