Mike Barnes

Fossil president Mike Barnes has big shoes to fill when he takes over as chief executive of Anglo-American jewellery giant Signet from veteran Terry Burman. But while little is known yet about the American, those who know him believe he is a force to be reckoned with.

Fellow jewellery boss, Aurum’s Justin Stead, believes Barnes is a good appointment for Signet.

“Mike has a relatively low profile, but he’s not to be underestimated. He’s a great strategist and knows the international jewellery and distribution market,” says Stead.

And Stead should know; he spent eight years at Fossil, and countless hours on the fairway during that time with golf-addict Barnes.

Barnes, who takes over as chief executive designate on December 1 and succeeds Burman in January, has spent the majority of his career at Fossil, which partly explains his low profile. He joined the watch specialist 25 years ago as one of its first employees and was integral in taking it from a US brand to a global business, which has extended its reach into accessories and clothing.

Now Fossil is the envy of many, clocking up annual net sales of more than $1.5bn (£970m) and carrying no debt. Keen family man Barnes, based in Texas at present, is leaving a strong business.

But how will Barnes adapt to his new role after so long in the Fossil hot seat? The path should be relatively straightforward in the US because Signet, which this week reported its third-quarter trading figures, is doing well. The UK, however, is more difficult.

“Signet is one of this year’s success stories in America,” says one City analyst. “It has a clear strategy and is performing well. There’s no pressure on the new chief executive to undertake a repair job. Essentially if it ain’t broke don’t fix it.”

The jeweller’s two-pronged attack in the US is clearly working. Kay Jewellers, its popular mall chain, fits hand in glove with its larger out-of-town Jared outlets, which attracts the upper end of the middle market.

Like-for-likes in Signet’s third quarter, for the 13 weeks to October 30, were up 9.7% in the US, although the UK suffered a slight 0.6% drop. Total sales rose by 5% to $641.8m (£403.2m) across the group.

Signet’s set-up should sit well with Barnes. The jeweller has a very stable management team one analyst says. According to Fossil chairman and chief executive Kosta Kartsotis, Barnes played an integral role in developing a similarly strong and stable leadership team at his company.

The Signet team, current chief executive Burman included, will see the jeweller through its key Christmas trading period while Barnes learns the ropes.

Despite Signet’s strength in the US, the UK remains difficult for the jewellery group, which operates through H Samuel and Ernest Jones chains here. “It’s a tougher marketplace in the UK,” says SG Securities analyst John Baillie. “It’s not clear where it will go in the medium term, but it will not be a key growth area.”

Barnes is likely to grab the bull by the horns though. During his time at Fossil he became synonymous with diversification and understands international markets, which is one area the new chief might look for growth.

“He is an ideas man, and will be looking at what options the firm has internationally. I wouldn’t be surprised if acquisitions were on the cards,” says one industry insider.

Barnes may be low profile, but he looks like one to watch.