Signet sales skyrocket in second quarter

By

Robin Driver

Published
Sep 3, 2021

Jewelry retailer Signet Jewelers Limited announced Q2 sales of $1.8 billion on Thursday, an increase of 101.4% from $888.0 million in the same period in the previous year, impressive progress which led the company to up its full-year guidance.

 
In the second quarter ended July 31, 2021, the group, which owns chains including Jared, Kay, Zales and Piercing Pagoda, saw its same store sales rise 97.4% compared to the prior-year period.
 
Due to the fact that last year’s results suffered from the significant negative impact of disruptions caused by the Covid-19 pandemic, Signet also provided data concerning the second quarter two years prior, in order to offer a more representative basis of comparison. Compared to this period, when sales were $1.4 billion, the company’s most recent second-quarter revenues represented a 31.1% rise, while same store sales increased 38.1%.

E-commerce sales for the quarter ended July 2021 totaled $336.2 million, up 24.5% compared to the prior-year period, while brick-and-mortar same store sales increased 130.8%.
 
Broken down by region, the company’s same store sales in North America increased 97.6% year over year, reflecting a rise in average transaction value of 10.0% and an increase of 70.1% in number of transactions. Signet’s international same store sales rose 95.1%, as a 4.5% decline in average transaction value failed to dampen an increase of 89.5% in number of transactions.
 
Net income attributable to the company’s common shareholders was $216.0 million, or $3.60 per diluted share, compared to a loss of $90.0 million, or $1.73 per diluted share, in the prior-year period.
 
“Our Signet team delivered strong second quarter top and bottom line performance with continued execution of our Inspiring Brilliance strategy, enabling us to maximize jewelry category strength and capture share over the last year," said Signet CEO Virginia C. Drosos in a release. “Our performance this quarter demonstrates that our banner value propositions, product newness, always-on marketing and connected commerce experiences are resonating with new and loyal customers.”
 
In the first six months of the current fiscal year, Signet achieved net sales of $3.5 billion, up 99.8% from $1.7 billion in the same period in the previous year. Net income was $345.8 million, or $5.84 per diluted share, compared to a loss of $295.3 million loss, or $5.69 per diluted share.
 
Looking forward, Signet expects its revenue to total between $1.26 billion and $1.31 billion in the third quarter, while same store sales are expected to decrease up to 3% or increase up to 1%.
 
The company’s success in the second quarter also led it to increase its guidance for the full fiscal year. Signet now expects to report annual revenue of between $6.80 and $6.95, as well as a same store sales increase in the range of 30% to 33%.
 
As of the end of July, Signet operates 2,837 stores under its different banners in the U.S., the UK, Ireland and Canada.