Signet, the jewellery giant that owns H Samuel and Ernest Jones, today reported a 27.8 per cent fall in pre-tax profit after its main customers in America cut back on luxury spending.

Profits for the six months to August 2 fell to $78.7 million (£44.2 million) on sales down 0.6 per cent to $1.5 billion.

A strong performance in the UK, where like-for-like revenue rose 2.3 per cent, was undermined by weak trading in the US where comparable sales fell by 5.2 per cent, dragging total like-for-like turnover down 3.4 per cent.

In the US, which accounts for 75 per cent of Signet's sales, the slowdown in the housing market as well as rising oil and food prices have led consumers to tighten their belts and cut back on discretionary spending.

The company said today that it is keeping its costs, inventory gross merchandise margin under control, stating: "...the business will be well positioned when the economy improves."

However, Terry Burman, chief executive of Signet, said: "In the short term, the consumer environment in both the US and the UK remains very challenging.

"As always, the results for the year will be significantly influenced by the group's performance during the important Christmas period.”

The company confirmed today that it is moving its primary listing next week to the New York Stock Exchange at a cost of $10.5 million in the first half. It said it will maintain its interim dividend at 96 cents.

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