Signet rediscovers its sparkle

SHARES in jewellery retailer Signet reached their highest point for a year today after sales in its key US market showed signs of improvement.

The group, which owns UK High Street chains H Samuel and Ernest Jones, said that sales in the US, where it generates almost three quarters of its business, had shown an 'improving trend' in May and June.

While quarterly results released last month showed the 600-strong UK businesses achieving like-for-like growth of 5.4% in the three months to February 2, the larger US operation lagged behind with growth of just 1.1%.

But comments from chairman James McAdam at the company's annual general meeting today saw shares in the London-based group climb 5% or 4 1/2p to reach 96 1/2p by mid-afternoon - their highest point since early July last year.

The group added today that trading in the UK had continued at a satisfactory level.

The pick-up in the US, where Signet has more than 1,000 outlets and trades as Kay Jewelers and Jared The Galleria of Jewelry as well as a string of regional names, comes after wet weather in late February and early March dampened the effect of a strong Valentine's Day.