Diamond jewellery sales help Ernest Jones to 11% growth in Q2


Ernest Jones has reported growth of 11.1% percent in Q2 with sales totalling $82.8m (£53.7m).

The strong results were reported by the retailer’s parent company, Signet Jewelers Limited in the US, and attributed to specifically to watch and diamond jewellery sales.

However the British pound’s strengthening position against the US dollar meant the results were almost negatively impacted, translating to growth of just 2.1%.

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UK sister company, retailer H Samuel, posted sales growth of 1.6% with total sales of $76.3m (£49.5m) during the same period, which translated into negative growth of 6.7% when taking into account exchange rates.

Signet’s UK division, made up of Ernest Jones and H Samuel, also reported an increase in average transaction price of 4.3% with the total number of transactions up 1.8%.

Signet reported second quarter sales growth of 4.2% across its international retail network of 3,600 stores in the US, UK and Canada.

Mark Light , chief executive officer of Signet Jewelers, said, “Signet delivered a second quarter increase in same store sales of 4.2%, earnings per share of $0.78 , and adjusted earnings per share of $1.28 , a 19.6% increase. These results exceeded our same store sales and adjusted EPS guidance for the quarter. Results were driven by strong and consistent sales growth across all of our selling channels, as well as solid profitability and disciplined cost management across our organization.

“The integration of Zale continues to go well, and we have begun to see the benefit of net synergies positively impact our operating results. I am increasingly confident that we are on track in FY16 to realize 20% of our three year net synergy target of $150 million to $175 million. We remain committed to maintaining profitable growth while balancing investment back into the business with shareholder distribution.”


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