ADRs in Focus: Signet Group rises on fiscal 1Q sales

For the quarter ended May 3, Signet said revenue increased 1 percent to $822.3 million in the first quarter, with U.K. sales up 5.1 percent to $191.4 million, and sales in the U.S. down 0.2 percent, to $630.9 million. Signet is the parent of Kay Jewelers.

"Like for like sales," or sales that exclude costs connected to opening and closing new stores, fell 2.5 percent. Like for like sales grew 5.3 percent in the U.K., however, which partly canceled out a 4.7-percent drop in the U.S.

American Depositary Receipts of Signet rose $1.23, or 8.8 percent, to $15.16 in afternoon trading. ADRs, are securities that allow U.S. investors to trade shares of companies based overseas.

Citi Investment Research analyst Ben Spruntulis said overall and U.S. like for like sales fell less than expected, and gains in the U.K. were above his expectations. He added sales in both countries improved from the fourth quarter, when Signet cited "unprecedented" weakness in Christmas sales.

Spruntulis said he is still concerned that U.K. trends will get worse later this year, and said he is cautious about U.S. sales as well. He kept a "Hold" rating on the stock.

The Bank of New York Europe ADR index picked up 2.25 points to 179.82.