Signet sales almost double in first quarter

By

Robin Driver

Published
Jun 11, 2021

International jewelry retailer Signet Jewelers Limited reported total first-quarter sales of $1.7 billion on Thursday, an increase of 98.2% from $852.1 million in the same period in the previous year, led by strong growth in North America.

 
In the first quarter ended May 1, 2021, the company, which owns brands including Kay Jewelers, Zales, Jared, H. Samuel, Ernest Jones and Piercing Pagoda, saw a year-over-year same store sales rise of $106.5%.
 
In North America, same store sales rose 117.2%, reflecting a 15.2% increase in average transaction value and 90.0% growth in number of transactions. Brick-and-mortar same store sales rose 118% in the region, while e-commerce sales rose 113.4%.

In Signet’s international segment, same store sales fell 12.2%. This reflected a 5.8% increase in average transaction value, offset by a 16.6% decline in number of transactions, which resulted from the mandated closure of UK stores for 10 of the 13 weeks of the quarter. International e-commerce sales grew 80%, while brick-and-mortar same store sales fell 40.9%.
 
Overall, Signet’s total e-commerce sales were $346.3 million, up 110.3% year over year, while brick-and-mortar same store sales rose 105.7%.
 
Net income attributable to Signet’s common shareholders came to $129.8 million, or $2.23 per diluted share, compared to a loss of $205.3 million, or $3.96 per diluted share, in the prior-year period.
 
“While the jewelry category is experiencing meaningful growth, we are outpacing market growth and gaining share consistent with our Inspiring Brilliance strategy,” said Signet CEO Virginia C. Drosos in a release. “Specifically, we are winning in our biggest banners through consumer-inspired differentiation, as evidenced by double-digit revenue growth in both Kay and Zales versus this time two years ago.”
 
The executive also highlighted the success of the company’s connected commerce strategy, which has led to higher conversion rates both online and in store.
 
Looking forward, Signet currently expects to report revenue of between $1.60 billion and $1.65 billion in the second quarter, reflecting a same store sales increase of between 76% and 82%.
 
In the full fiscal year, the company predicts that its revenue will be in the range of $6.50 billion to $6.65 billion, reflecting an increase in same store sales of between 24% and 27%.
 
Since the end of the first quarter, Signet has launched its first-ever Corporate Citizenship and Sustainability Report, as well as its 2030 Corporate Sustainability Goals, a set of 44 objectives including both human capital management and climate change goals.
 
Signet currently operates approximately 2,800 stores under its different banners.