Signet Group Sales Rise 9.2% to $1,601.8 Million in H1

Signet Group posted a profit of $69.2 million in the first half of the year, rising from $68 million the year before. The results follow an earlier announcement of a 7.4 percent rise in sales in the second quarter. Quarterly profits rose to $36.7 million.

The rise was backed by strong sales by the UK operations of the specialty retailer, representing 25.8 percent of group sales. “The UK business outperformed the retail market with a like-for-like sales increase of 4.6%,” CEO Terry Burman said in a release, adding that the U.S. division continued to gain market share.

In the U.S., the company noted a “resilient” bridal market but said that Valentine’s Day sales were hurt by adverse weather and a disappointing Mother’s Day.

White gold jewelry continued to perform well, as did Journey and Circle ranges in the necklace category and loose diamonds. The average unit selling price in both the mall formats and Jared rose by about 5 percent as a result of selective price increases and mix changes.

There will be a further increase in Kay advertising expenditures over the important Christmas period. Jared will begin to use national network television advertising for Christmas 2007, rather than purchasing airtime on a local market basis.

In the UK, Signet sales increased by 4.2 percent at constant exchange rates to $384.9 million. Operating loss was $0.6 million in the quarter

The company noted in particular strong performance of the watch category and that “diamond participation in the division increased further.”

Signet is the world’s largest specialty retail jeweler. Its U.S. division targets the middle market, holding an approximate 8.8 percent market share of the specialty jewelry market.

The UK division has 581 stores and a total market share of approximately 17 percent. It trades under the names H.Samuel, targeting the middle market, and Ernest Jones, aiming at the upper end of the middle market.