Charm sales top Christmas gift list
Jan 13 2010 by Iain Laing, The Journal
CHARM bracelets and sparklers were top of the Christmas gift list this year, but demand was not enough to prevent a slide in UK sales, according to the owner of H Samuel and Ernest Jones.
Signet revealed a 0.8% fall in UK same-store sales in the nine weeks to January 2 – down further on the 0.2% fall seen in the third quarter.
But Ernest Jones saw sales return to positive territory over the Christmas period, while Signet’s US division also put in a more robust performance.
The US arm, which is by far the biggest in the group with around three quarters of total revenues, saw like-for-like sales rise 7.6% in a marked turnaround on the declines of 5.5% and 2.4% seen in previous quarters.
The group now expects full-year figures to be ahead of its targets, forecasting pre-tax income of between £137.7m and £143.9m, against market expectations for around £130m.
In the UK, Signet said trading was impacted marginally by the snow and freezing weather before Christmas.
Charm bracelets were bestsellers in both H Samuel and Ernest Jones, with diamonds and prestige watches also in high demand.
Lower diamond prices have made sparklers more accessible for Signet’s shoppers, while the shift in the sales mix towards diamond products rather than gold has also contributed to an increase in average selling prices of 8% at H Samuel and 15% at Ernest Jones.
Signet also announced it will begin the hunt for a successor to group chief executive Terry Burman in February.
However, it surprised experts by revealing that strong internal candidate Mark Light, boss of the US arm, will not be going for the top job for personal reasons.
