Signet profit falls 28 percent
Signet, the world's biggest speciality jewellery retailer, posted a 27.8 percent fall in first-half profit, slightly better than analysts had feared, but said the trading outlook remained very tough.
First Great Western to invest £29 mln in service improvements"Retail trading conditions remain very challenging. While they aren't any worse, there's no sign of them getting better," Chief Executive Terry Burman told analysts on a conference call.
Signet, which trades as Kay Jewellers and Jared the Galleria of Jewellery in its main U.S. market, said on Wednesday it made a profit before tax and relisting costs of $78.7 million (44 million pounds) in the 26 weeks ended August 2, with strong demand for upmarket watches helping to mitigate the tough trading environment.
Analysts had expected the group, which is moving its primary listing to New York next week, to make a profit of $76 million to $77 million, according to a company poll.
Signet, which trades as H. Samuel and Ernest Jones, has been hit hard by a downturn in discretionary spending by shoppers on both sides of the Atlantic as they cope with rising food and fuel bills and weak housing markets.
The group has responded by controlling costs and stock levels tightly, and also expanding its ranges of exclusive merchandise amid signs that higher-income customers are still prepared to spend despite the economic storm clouds.
Upmarket U.S. jeweller Tiffany beat second-quarter earnings forecasts last week and lifted its full-year guidance.
JP Morgan analysts kept a 'neutral' rating on Signet shares, saying that while the first-half results were slightly better than expected, the stock had already rallied by more than 30 percent over the past month.
At 3:20 p.m. the shares, still down around a third in a value over the past year, were up 3.5 percent at 67 pence, giving a market capitalisation of about 1.1 billion pounds.
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