Signet returns to profit as sales sparkles in US

A STRONG showing from its US brands helped offset a weak performance in the UK for jewellery group Signet.

The company, which operates more than 500 shops under the H Samuel and Ernest Jones names in the UK, returned to profit in the third quarter of the year thanks to sales increases at its Jared and Kay businesses in the States.

The UK division saw total sales decrease 6.2 per cent to 91.2 million and like-for-like sales were down by 0.6 per cent.

Total group sales rose 5 per cent to 403m, beating analysts' forecasts and taking the year to date rise to 4.3 per cent with net profits 3.7m compared with a loss of 5.5m in the same quarter last year.

Chief executive Terry Burman said: "We are delighted with our third quarter results. In particular, the 9.7 per cent US same store sales increase was a very good performance, which drove strong operating leverage and a return to third-quarter profitability."

Burman said the economy was still tough but he was confident the group would outperform rivals and that price increases and less discounting had helped its gross margin. "The economic environment remains challenging for the very important fourth quarter. However, we are confident that we are well prepared to compete in both the US and the UK markets," he said.

Burman is retiring in January and will be replaced by Michael Barnes, who will be based in the US.

Shares in Signet closed up 165p, or 7 per cent, at 2,510p.