H Samuel and Ernest Jones owner cuts loss despite £40m sales hit

The firm behind high street jewellers H Samuel and Ernest Jones has managed to significantly reduce its losses, despite witnessing a nearly £40m drop in sales during its most recent financial year. The Birmingham-based business reported a pre-tax loss of £483,000 for the year ending 3 February, 2024, a substantial decrease from the £8.9m loss it recorded in the previous 12 months.

According to accounts recently filed with Companies House, the company's turnover also fell from £384.1m to £344.6m over the same period. H Samuel and Ernest Jones are part of Signet Jewelers, a group domiciled in Bermuda and headquartered in the US, which is also listed on the New York Stock Exchange, as reported by City AM.

In addition to H Samuel and Ernest Jones, Signet Jewelers owns brands such as Blue Nile, Zales, Kay Jewelers, Jared and JamesAllen.com. H Samuel was established in 1862 in Liverpool, while Ernest Jones traces its origins back to 1949 in London.

Over the course of the year, the average number of employees at the company behind H Samuel and Ernest Jones decreased from 2,186 to 2,043. A statement approved by the board read: "Sales were impacted by the rising cost of living in the UK which is expected to continue in the medium term."

It added: "The company’s strategy remains to grow the business through continued investment in its stores and website and driving its strategic imperatives."

"During the year, the company made the decision to focus on the core strategy of selling diamonds, jewellery and watches and in October 2023 entered into an agreement to sell the operations and certain assets of its prestige watch business. The sale was substantially completed in the fourth quarter."

"Despite the reduction in sales, in line with expectations the resulting underlying group operating loss, excluding the exceptional profit on the sale of the previously mentioned prestige watch operations, was broadly in line with the prior year at £8.6m, reflecting tight control of overheads and strategic initiatives."

The results follow Beaverbrooks, a rival to H Samuel and Ernest Jones, reporting a significant cut in profit despite another year of record sales. The family-owned retailer reported an operating profit of £10.5m for the year ending February 2024, a decrease from the £25.7m it achieved in the previous 12 months.