Signet worries over low US and UK sales

Signet Group plc has announced an increase of its group total sales for the third quarter of 2007, ending November 3, however facing a decline in its profit figures. Sales were scaling higher by 10% to value at $678.7 million. Its like-for-like sales, a measure of growth at existing locations rather than growth from expansion, was also on a growth of 3.2%.

Net profit in the said period fell by 69% to amount to $1.6 million, and profit before tax dropped down to value $2.5 million. Group chief executive Terry Burman mentioned that “In the year-to-date profit before tax was slightly below last year’s level primarily reflecting a more challenging retail marketplace in the US”.

Burman said that “As ever, the results for the year will depend on the very important Christmas trading season, 75% of which is still ahead of us. Signet faced a lowered sales in both its US and U.K. markets for the third quarter.

This in turn has discouraged its full-year profit expectations. With rising prices of raw materials like gold and diamonds and lowered sales, has discouraged its full-year profit expectations. The snow-ball effect has been felt on Signte’s shares which tumbled 17% to £0.64 on anticipation of lean Christmas sales.