Signet upbeat as diamond sales sparkle

British jewellery retailer Signet continued its recent glittering performance today after first half like-for-like sales rose 7.4% to £671.6m (€1bn).

The owner of Ernest Jones and H Samuel said increased demand for diamonds helped lift figures, which included a 6% second quarter gain.

Same-store sales in the UK were 5.5% higher in the 26 weeks to July 31 – ahead of the general retail market – with Ernest Jones performing particularly well.

Director of investor relations Tim Jackson said the group was benefiting from its strategy to increase sales of diamonds. People were buying diamond earrings and other accessories in addition to traditional lines such as engagement rings.

He said: “In the UK people are increasingly wearing diamonds as a fashion accessory.”

Signet operates 599 stores in the UK, including the Leslie Davis chain. It also has 1,126 outlets in the United States, where it trades as Kay Jewelers and Jared the Galleria of Jewelry.

Ernest Jones posted a 7.9% hike in like-for-like sales in the first half, although this slowed to 5.9% in the second quarter. Meanwhile, same-store sales at H Samuel increased by 3.6% in the first half and 3.2% in the second quarter.

The group recently said that diamond sales were a major driver of success over the Valentine’s Day period in the UK.

Signet aims to revamp 85 branches this year compared with 32 last year as it shifts away from traditional window displays of jewellery to more open-plan stores.

Meanwhile, around 100 staff are likely to be affected by an operational shake-up to consolidate functions at its head offices in London and Birmingham.

Plans are in place to move its IT, human resources and finance departments from London to Birmingham. The responsibilities are currently split between the two offices.