Jewellery group Signet, which does most of its trade in the US, has issued a profit warning in the face of uncertainty on both sides of the Atlantic.

The news accompanied a third quarter update from the retailer, showing a fall in profits.

Signet group chief executive Terry Burman said trading had deteriorated since the end of the period. He said: “US sales have weakened further and so far in November like for like sales are down around 7 per cent. In the UK, there has been a weakening as the month has progressed. Given the backdrop of trading in November and increased economic uncertainty on both sides of the Atlantic, we believe current analysts’ expectations are unlikely to be met and that a wider than normal range of profit before tax estimates would be appropriate.”

Group pre-tax profits were US$2.5 million (£1.2 million) for the third quarter to November 3, down from US$8 million (£3.9 million) the previous year. Total sales rose 10 per cent to US$678.7 million (£327.8 million) during the period and like-for-likes were up 3.2 per cent.

In the 39 weeks to November 3, pre-tax profits fell to US$111.5 million (£55.8 million) from US$113.6 million (£54.8 million). Like-for-like sales were up 3.2 per cent.

Signet’s UK division, which accounts for 25 per cent of group annual sales, bucked the trend by reporting an operating profit of US$200,000 against a loss of US$2 million (£966,000) the previous year. Total sales rose 9.9 per cent in the 13 week period to US$190.5 million (£92 million). Like-for-like sales were up by 4.8 per cent.

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