Transatlantic jeweller Signet has announced that sales of gold, diamonds and wristwatches were low in the vital Christmas trading period,
The group, which controls the UK's Ernest Jones and H Samuel as well as two big US jewellers, Kay and Jared, will be closing stores in the US and axe its dividend payout after the disastrous seasonal sales.
Chief executive Terry Burman revealed a "very disappointing" 15.2 per cent slump in group sales in the nine weeks to 3 January. UK sales were down nearly 11 per cent, with the more expensive Ernest Jones faring worse than the cheaper H Samuel.
The jeweller has been in talks with its lenders about relaxing a banking covenant and is taking steps to reduce debt by cutting costs, stocks and investment . Around 60 US outlets will be shut as leases expire. Mr Burman said: "In the light of economic prospects and financial market conditions, as well as the focus on debt reduction, it is not currently appropriate to pay dividends."
Slump in jewellery sales for Signet
Fri, 09 Jan 2009
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