Jewellery retailer Signet yesterday said it was well placed ahead of the key Christmas season after profits advanced in the third quarter.
The owner of H Samuel and Ernest Jones said it expected to improve on festive sales a year ago despite tough comparatives and signs of a recent weakening in the UK market.
An advertising blitz is being planned after the success of its first TV campaign for at least five years last Christmas.
Signet said an overhaul of more of its UK stores would help to drive sales of diamonds higher, with 142 outlets out of 601 stores expected to be trading with a more open shop design by Christmas.
After stripping out the impact of currency swings, Signet said profits rose 12 per cent to £8.4 million for the 13 weeks to October 30, while turnover was ahead by six per cent at £292.1 million.
But the weak US dollar put the brakes on the reported rise in profits - up only nine per cent as Signet generates two-thirds of its revenues across the Atlantic.
Chief executive Terry Burman said: "While our businesses on both sides of the Atlantic face demanding comparatives they are well-positioned to compete over the Christmas season."
The update came a fortnight after Signet told investors that its third-quarter performance had been weakened by the hurricanes in the US.
Like-for-like sales across the Atlantic rose 3.5 per cent in the period after Hurricane Charley ripped through Florida, followed by three more hurricanes which kept shop-pers at home.
Margins at its US business are expected to be slightly lower in the fourth quarter as the price of key commodities such as gold is above last year's levels.
