Gem of a year for Goldsmiths
THE INVESTMENT COLUMN
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Goldsmiths, the fast expanding jewellery chain run by Jurek Piasecki, has been the gem of the sector this year. In April the company announced doubled profits of pounds 3m. New stores, better systems and a couple of small acquisitions have boosted the group, which has been well positioned to take advantage of the problems at Signet, the former Ratners business which controls H Samuel and Ernest Jones stores.
The shares have mirrored the trading, rising by 50 per cent this year to 227p, up another 2p yesterday.
The good news continued with yesterday's bullish Christmas trading statement. Like-for-like sales rose by 8.7 per cent in the month before Christmas, compared with a very strong December last year. Sales for the 11 months to December were up by a heady 7.7 per cent. The concession opened in Harrods this year is also trading well.
Goldsmiths built its reputation on watches, which account for around 50 per cent of sales. It has tied up distribution agreements with Rolex, Cartier and Gucci, but is now looking to expand its non-watch business.
The plan is to add a further 8 outlets next year to the existing chain of 119. It has also declared its interest in buying H Samuel and Ernest Jones from Signet, although it has been rebuffed so far.
The company's broker ABN Amro Hoare Govett upgraded its full-year profit forecast to pounds 4.25m yesterday. That puts the shares on a forward rating of 16. About right.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments