Signet Jewelers has reported a drop in same-store sales for the UK in its results for the second quarter of the year.
In its Q2 report for the 13 weeks ending August 4, 2018, Signet revealed its UK operation saw same store sales slide by 2.4%, with Ernest Jones and H Samuel posting a decrease of 1.1% and 3.8% respectively.
Signet says the same store sales decline was driven by lower sales in diamond jewellery and fashion watches, partially offset by higher sales in prestige watches.
Despite a drop in same-store sales though, compared to the same period last year total turnover at Ernest Jones increased by 1.7% to $70.9 million (£54.5m), while H Samuel posted a 2.6% loss of $60.6 million (£46.5m).
Overall, Signet had a positive second quarter, with total same-store sales rising by 1.7%, and total sales up 1.5% to $1.42 billion (£1.09bn).
The increase in total sales of in the quarter was positively impacted by the same-store sales performance in North America; the addition of James Allen (acquired in September 2017); and the application of new revenue recognition accounting standards.
eCommerce sales in the second quarter including James Allen were $150.3 million (£115.5m), up 82.8% on a reported basis.
Signet chief executive officer, Virginia C. Drosos, says of the results: “While it is still early in our journey, we are encouraged by our improving year-to-date performance as we execute against our Path to Brilliance transformation plan. During the second quarter, we continued to see stabilisation in same store sales, and we remain confident that we have the right strategies in place to continue to drive operational improvement over the long-term. To reflect our improved= second quarter performance, we are modestly raising our revenue and earnings guidance for the year.”
“For the fourth quarter, however, where a vast majority of our annual operating profit is generated, we are remaining appropriately cautious in our outlook as many of our Path to Brilliance initiatives are being launched later in the year,” warns Drosos as she looks ahead.