Signet reports quarterly sales, profit decline, reaffirms full-year guidance

By

Benjamin Fitzgerald

Published
Sep 2, 2022

Signet Jewelers Limited announced on Thursday revenues for the second quarter dipped 1.9%, on the back of a dive in comparable store sales and international segment revenues.

The Hamilton, Bermuda-based company said total sales for the quarter were $1.8 billion, down $33.2 million or 1.9%, following record second-quarter sales in the prior year, while total same-store sales were down 8.2%.

By region, total sales in North America reached $1.6 billion, down 1.8%, brought down by an 8.7% decline in same-store sales, reflecting higher average transaction value, but a lower number of transactions, the company said.

International sales plunged 14.6% to f $111.6 million, while same-store sales declined 1.5%.

For the three months ending July 30, Signet reported diluted earnings per share of $2.58, down compared to $3.60 in the prior-year period.

"Signet's focus on gaining market share, driving further operating efficiencies, and building capabilities that are true competitive advantages, is putting us in a position to deliver long-term growth and increase shareholder value," said Virginia Drosos, chief executive officer.

"Our results demonstrate the continued agility of our Signet team, the strength of our differentiated banner portfolio, and the flexibility of our operating model. This is all underpinned by a balance sheet that enables us to continue to make strategic investments such as our recent acquisition of Blue Nile."

Looking ahead, the company reaffirmed its fiscal 2023 guidance, adding it still expects revenue to sit between $1.46 billion and $1.49 billion with diluted earnings per share of $7.60 to $7.70 for the year.

Signet operates approximately 2,800 stores under the name brands of Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, JamesAllen.com, Blue Nile, Peoples, H. Samuel, Ernest Jones and the jewelry subscription service, Rocksbox.