High street jewellery giants struggle to sparkle
Growth seems to be hard to come by in almost any industry at the moment, especially as UK business leaders brace for Chancellor Rachel Reeves to deliver her expected tax hikes later this month.
But the latest set of financial results for two of the country’s largest jewellery chains has shone a spotlight on the tight margins that these high street staples are currently dealing with.
Rising raw material costs, changing consumer behaviour because of the cost of living as well as increasing taxes and wages are just some of the battles being fought by established names.
Below, Morning Wire details how the largest players in the industry have been performing recently and why.
Losses almost triple at H Samuel and Ernest Jones owner as jobs shed
The company behind the H Samuel and Ernest Jones brands shed almost 300 jobs during its latest financial year as its pre-tax losses nearly tripled.
New accounts filed with Companies House show the firm’s pre-tax loss widened from £483,000 to £1.3m in the 12 months to 1 February, 2025.
Its turnover decreased from £344.6m to £292.9m over the same period – partly as a result of it selling off its luxury watches division.
The accounts also show the Birmingham-headquartered group’s headcount fell from 2,043 to 1,761 in the year.
The group said that it restructured its store estate and cost base in the year, “creating a leaner, more agile operation positioned for future growth”.
It added that as a result, its operating profit before exceptional items totalled £2.6m, up from a loss of £8.6m.
On its future, it said: “The group remains focused on sustainable growth through continued investment in its stores, digital channels and product innovation, supported by a strong commitment to customer experience and operational excellence.”
H Samuel and Ernest Jones are owned by Signet Jewelers which is domiciled in Bermuda and headquartered in the US. The group is also listed on the New York Stock Exchange.
Signet Jewelers also owns the likes of Blue Nile, Zales, Kay Jewelers, Jared and JamesAllen.com.
H Samuel was founded in 1862 in Liverpool while Ernest Jones can trace its roots back to 1949 in London.
Beaverbrooks’ profit almost wiped out
Family-owned chain Beaverbrooks also endured a tough time during its latest financial year, with its pre-tax profit almost being wiped out.
The Lytham St Annes-headquartered company, which was established in 1919, posted a pre-tax profit of £340,000 for the year to 1 March, 2025, according to documents filed in September.
That figure was down from the near-£1.1m it achieved in the prior 12 months.
Over the same period, Beaverbrooks’ turnover also declined from £228.6m to £217.3m.
In a statement signed off by the board, Beaverbrooks said its directors were “satisfied” with its performance.
It added: “despite reducing turnover, gross profit margin increased and cost efficiencies were identified to mitigate as far as possible the impact on profit and cash.”
Beaverbrooks’ results were also hit by a £1.5m loss on an aborted IT project which has since been restarted.
In April and May this year, the chain closed seven stores which “had become no longer commercial viable”.
It also warned that its directors “expect the retail environment to continue to be challenging in the year ahead”.
Watches of Switzerland battles Trump’s tariffs
The bets bellwether of how the UK high street jewellery industry is performing is London-listed giant, Watches of Switzerland.
The Leicester-headquartered FTSE 250 group, which includes the Mappin & Webb, Goldsmiths, Mayors and Betteridge brands,
In terms of its share price, Watches of Switzerland has had a tricky time so far in 2025 – with its stock falling in value from 547p at the start of the year to around 400p today.
According to its full-year results to 27 April, 2025, the group’s pre-tax profit fell from £92.1m to £75.9m.
However, its revenue over the same period grew from £1.5bn to £1.6bn.
And a month after the results are published, shares in the group suffered a sharp fall as investors shied away from the effect of US President Donald Trump’s sweeping tariffs.
Watches of Switzerland is due to publish its half-year results on Thursday, 6 November.
Green shoots for F Hinds
The latest results for F Hinds are expected to be filed with Companies House next month.
According to its accounts for the year to 31 March, 2024, the chain’s turnover increased from £79.4m to £83.3m while its pre-tax profit fell from £12.5m to £10.4m.
It also increased its headcount from 715 to 752 over the period – bucking a national trend.
Losses widen at Fraser Hart and TH Baker
TH Baker’s latest financial performance is also due to be revealed next month.
Accounts for the year to 31 March, 2024, show the chain’s turnover increased from £27m to £29.1m but its pre-tax loss widen from £17,489 to £413,020.
The latest set of accounts for fellow high street jewellery store chain Fraser Hart are not due to be filed with Companies House until March 2026.
According to its most recent results, which were published in April, the business posted a pre-tax loss of £3m for the 12 months to 23 June, 2024.
Fraser Hart had previously raked up a loss of £2.6m in the prior year.
The Glasgow firm’s turnover also fell in the year from £39.m to £35.3m.