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.