H Samuel takes shine off jeweller Signet
H Samuel jeweller Signet made another loss in the UK today after promotional activity required to offset tough trading conditions affected margins.
The transatlantic group, which also owns the Ernest Jones chain, posted operating losses in the UK of £1.6m (€2.33m) for the 13 weeks to April 29, compared with a deficit of £400,000 (€582,34) in the same period a year earlier.
Like-for-like sales in the UK were 0.7% lower – including a drop of 2.4% for H Samuel – while Signet said margins fell due to targeted promotional activity.
Across the group, which generates two-thirds of its sales in the United States, profits were up by 10% to £30.7m (€44.69m), following a rise in total sales of 13.7% to £419.6m (€610.86m).
Chief executive Terry Burman said: “The general retail environment in the UK remained challenging throughout the quarter and our like-for-like sales performance was broadly in line with the high street as a whole.
“While costs were tightly controlled, pressure on gross margins adversely affected operating results.”
Ernest Jones enjoyed a stronger performance, lifting like-for-like sales by 1.3%, while Signet said average selling prices in the UK increased and the proportion of diamond sales also rose.
Signet shares improved 3% to 95p today, as analysts said the first quarter profits figure had come in better than expected.
In April, Signet announced UK operating profits of £49.1m (€71.48m) in the year to January 28, against the £76.9m (€111.95m) achieved a year earlier.
Like-for-like sales fell by 8.2% during the period, but Signet said that it had managed to protect its margins while its larger operation in the United States benefited from a significantly better retail climate.
Signet has 591 stores in the UK, where it also trades as Leslie Davis, while it operates in Ireland as well as 1,246 sites in the US.
