Signet Q2 Sales Dip As Market Turmoil Continues

Retail jeweler giant Signet Group on Wednesday said its second-quarter sales had dipped as price increases were offset by various factors including commodity cost increases.

Second quarter sales dipped to $769 million from $787 million the year before following a decline in same store sales, Signet said in a statement.

Net profit in the second quarter dropped to $20 million from $41 million in the year ago quarter.

U.S. sales, which represent about 75 percent of group sales, declined to $576 million from $585 million a year earlier, while U.K. sales, accounting for about 25 percent of group sales, dropped to $193 million from $203 million in the previous year.

Terry Burman, chief executive of Signet Group, noted in a statement that adjustments in execution are being made to reflect the challenging economic conditions with tight control of costs, inventory, gross merchandise margin and investment in new space.

“As a result, the business will be well positioned when the economy improves,” Burman said. “However, in the short term, the consumer environment in both the US and the UK remains very challenging.”