Signet swings to surprise Q3 profit
International jewelry retail group Signet Jewelers Limited announced net income of $900,000, or $0.02 per diluted share, for the third quarter on Thursday, up from a net loss of $43.7 million, or $0.84 per diluted share, in the prior-year period.
In the third quarter ended October 31, 2020, the owner of brands including Kay Jewelers, Zales, Jared, and H.Samuel achieved total sales of $1.3 billion, an increase of 9.5% compared to the $1.1 billion reported by the company in the same period in the previous year. Same store sales improved 15.1% year over year.
E-commerce sales for the quarter increased 71.4% to $238.8 million, while brick-and-mortar same store sales rose 6.8%.
In the company’s North America segment, same store sales increased 15.8%, with e-commerce sales in the region growing 72.7%, while brick-and-mortar same store sales rose 7.5%. The international segment posted an increase of 7.8% in same store sales, with e-commerce revenues rising 58.4% and brick-and-mortar same store sales creeping up 0.5%.
“I'd like to express tremendous appreciation to our Signet team for their passion and strong execution of our Path to Brilliance strategy in the third quarter,” said Signet CEO Virginia C. Drosos in a release.
“Our success came from a combination of factors including significant digital, product, and marketing innovations; our ability to capture pent-up demand as our stores reopened; and intentional efforts to capture early holiday shopping to help mitigate traditionally high in-store traffic days in December,” she added.
Year to date, Signet’s revenues totaled $3.0 billion, down 23.7% from $4.0 billion in the prior-year period. Net loss for the nine-month period was $294.4 million, or $5.67 per diluted share, compared to a loss of $106.2 million, or $2.05 per diluted share, in the previous year.
Due to uncertainty surrounding the ongoing Covid-19 pandemic, Signet did not provide detailed financial guidance for the fourth quarter, but expects the health crisis to have a significant negative impact on its operations in November and December.
Following Signet’s announcement of its third-quarter profit, shares in the company shot up 8.7% in pre-market trading on Thursday.
The retailer currently operates 2,893 stores, 2,539 of which are located in North America.
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