Cheaper gems boost Signet results

Cheaper diamond prices helped H Samuel and Ernest Jones deliver a marked improvement in third quarter sales

Cheaper diamond prices helped H Samuel and Ernest Jones deliver a marked improvement in third quarter sales as consumers snapped up more affordable sparklers, parent company Signet said.

The group, which also operates the Leslie Davis brand in the UK, reported a narrowing in same-store sales declines to 0.2% in the 13 weeks to October 31, from a 4.3% plunge in the previous three months.

Ernest Jones put in a "noteworthy" performance, reversing a 6.2% drop in the second quarter to a fall of 0.3% in the third, according to the group.

It said a tentative recovery in consumer confidence added to higher sales of diamond products as revenues improved.

The group has been able to use its buying power to take advantage of cheaper diamond prices this year.

The slight shift in the sales mix towards diamond products rather than gold contributed to an increase in average selling prices of 9.2% at H Samuel and 4.7% at Ernest Jones in the first half.

But despite the better third quarter result, Signet cautioned over the trading outlook.

Walker Boyd, group finance director at Signet, said: "Consumer confidence is perhaps becoming a bit more stable, but whether that can continue is where we have to be cautious."

The group said it was "well prepared" for the Christmas selling season.

"We recognise consumers are looking for good value and we'll very much cater for that," said Mr Boyd.