Signet enjoys highest same-store sales jump in seven years

The owner H Samuel and Ernest Jones, Signet UK, has reported that sales rose 8.4% to $151m (£96.1m) in the third quarter of this year.

The firm said its results were buoyed by the acquisition of US jeweller Zale Corporation in May this year, as well as purchase accounting, severance and transaction costs.

Mark Light , CEO, said: “We delivered a solid third quarter highlighted by continued strength in same-store sales, which rose 4.2%, led by Kay at 7.5% and Jared at 6.5%. The Sterling division delivered strong operating profit.”

He added that “positive momentum” in the UK division was evidenced by the highest increase in same-store sales for seven years, at 3.7%.

Light added: “While Zale same store sales declined 0.9%, we remain pleased with the Zale division integration progress. In the short time period since owning Zale, we have been able to implement select initiatives to further the Zale holiday business. We remain confident in our ability to meet our goal of $150 million to $175 million in cumulative 3-year synergies from January-end 2015 to January-end 2018.”

Separately, as part of Signet’s ongoing efforts to manage its diamond supply chain, Signet announced it has entered into a rough diamond supply contract in Botswana with DeBeers, the world’s leading rough diamond producer.

“The DeBeers Sight advances our strategic diamond sourcing efforts to the next level. Following last year’s purchase of a diamond cutting factory in Botswana, we believe, as a Sightholder, that we are now far ahead of most industry peers. This provides us greater access to supply in a growing supply-and-demand gap.”

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