In its trading statement, Signet noted that the later timing of Mother's Day in the US this year is estimated to have cost about£1.5 million in lost turnover. Despite of this setback, the US, which accounts for 73 per cent of group annual sales, put in the strongest performance, with revenues increasing 18.1 per cent from£277.9 million last year to£328.3 million. The US operating margin declined slightly from last year's 11.3 per cent to 10.9 per cent. However, according to Signet, selective action on selling prices helped to mitigate bottom line pressure.
The UK, which accounts for 27 per cent of Signet's group sales proved more difficult. Like-for-like sales fell 0.7 per cent, resulting in an operating loss of£1.6 million. Margins also took a hit because promotional activity proved necessary. Total sales for the UK were the same as last year at£91.3 million.
Signet fascia H Samuel in particular was singled out for its lacklustre performance, where like-for-like sales declined by 2.4 per cent.
Evolution analyst Nick Bubb said: 'There weren't too many surprises here. The big issue is the dollar exposure. It's highly vulnerable to shifts in the dollar and to US consumers. That's why the shares have been under pressure in recent weeks.'
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