Signet suffers despite UK recovery

Shares in H Samuel and Ernest Jones jeweller Signet were hit today after the company warned of weaker trading in the United States since February.

The company said that bad weather over the Valentine’s Day period had hit like-for-like sales growth, sending shares more than 7% lower.

The tougher conditions in the US, which accounts for 75% of group sales, contrasts with an improving outlook for Signet’s previously struggling UK business.

Chief executive Terry Burman said of the UK performance: “Sales growth has strengthened a little from the performance of last year, although the marketplace remains challenging.”

The company, which has nearly 600 UK stores, posted UK operating profits of £55m (€81.2m) for the 53 weeks to February 3 as the firm sold more diamond jewellery and saw a better performance from its revamped H Samuel stores.

Signet said UK like-for-like sales in the UK rose 1.2% as H Samuel increased its Forever Diamond range, while Ernest Jones stocked an exclusive selection of Armani watches.