Signet’s Q2 Sales Double Year-Over-Year

Akron, Ohio—Signet Jewelers Ltd. saw second-quarter sales more than double year-over-year, encouraging the jeweler to up its guidance for the fiscal year yet again.

In the second quarter ending July 31, total sales were up 101 percent to $1.79 billion, with same-store sales nearly doubling, up 97 percent.

Compared to second quarter of fiscal 2020, pre-pandemic, sales were up 31 percent with same-store sales rising 38 percent. 

Year-to-date, Signet’s sales have totaled $3.48 billion, up 100 percent year-over-year.

Quarterly brick-and-mortar sales more than doubled, up 131 percent year-over-year in the second quarter and up 28 percent compared to before the pandemic. 

Online sales were up 25 percent year-over-year to $336.2 million. When compared with pre-pandemic levels, online sales more than doubled, up 114 percent.

“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,” Signet Jewelers CEO Gina Drosos said in a press release on its results.

There has been a growing concern in the retail sector that as pandemic restrictions lift, consumers will shift their discretionary spending away from goods back to travel and experiences. 

The rise of the Delta variant may be delaying that shift, Drosos said on the company’s earnings call Thursday morning.

The company’s research noted a growing concern about the Delta variant among younger, unvaccinated consumers, ages 18 to 49.

This group of customers feels more comfortable in malls or shopping centers than being on a plane, visiting a concert venue, or going to the spa, she said.

“We’re preparing to meet them wherever and however they want to shop with us across our connected commerce ecosystem, including online, curbside pickup, and same-day concierge delivery,” said Drosos.

“With travel and experiences taking a back seat, we’re advancing our flexible fulfillment options while also meeting customers’ desires to celebrate those closest to them with gifts of significance and lasting value.”

In North America, where Signet’s banners include Kay, Jared and Zales, second-quarter same-store sales nearly doubled year-over-year, up 98 percent, and were up 40 percent compared with before COVID.

Brick-and-mortar same-store sales in the region were strong, up 130 percent compared with last year and 29 percent compared with pre-pandemic levels. 

Online sales in the region were up 26 percent compared with last year and more than doubled, up 117 percent, when compared with before COVID.

In the U.K., same-store sales were up 95 percent compared with last year and 18 percent compared with pre-pandemic levels.

Brick-and-mortar U.K. sales surged 136 percent year-over-year, up 10 percent when compared with before COVID. E-commerce sales were up 10 percent year-over-year and up 82 percent compared with pre-pandemic levels.

Average transaction value slipped 5 percent while the number of transactions climbed 90 percent year-over-year.

Looking at sales by category, bridal climbed 70 percent year-over-year, while fashion jewelry sales were up 128 percent and watch sales climbed 116 percent.

Sales in the “others” category, which includes repairs, gifts, and other non-jewelry items, were up 158 percent year-over-year.

By banner, Kay Jewelers posted quarterly sales of $673.7 million, up 107 percent year-over-year while Zale’s quarterly sales were up 98 percent to $367.3 million.

Jared’s quarterly sales were up 85 percent to $311.9 million while Piercing Pagoda’s sales grew 134 percent to $138.7 million.

The kiosk-centric brand recently underwent a name change, now called Banter by Piercing Pagoda. As of Aug. 2, there were 200 Banter by Piercing Pagoda stores.

E-tailer James Allen posted quarterly sales of $108.8 million, up 69 percent year-over-year.

Looking at its store count, Signet expects to close more than 100 stores this fiscal year and open up to 100 stores, particularly “highly efficient” Piercing Pagoda locations.

So far this fiscal year, 33 stores closed and 37 opened.

Signet said it does not expect to see large-scale store closures related to COVID-19 again, but said it would close stores if the health and safety of its employees and customers were at risk.

For the fiscal year ahead, Signet upped its financial guidance, expecting revenue to reach $6.80 billion to $6.95 billion, compared with its prior guidance of $6.50 billion-$6.65 billion. 

Same-store sales are expected to grow 30-33 percent, up from its prior guidance of 24-27 percent.

Looking to the third quarter, revenue is expected to be between $1.26 billion and $1.31 billion with same-store sales in the range of down 3 percent to up 1 percent.

Signet’s updated guidance depends on a variety of factors, including the “magnitude and duration of COVID-19,” particularly the rise of the Delta variant, and the degree of the shift of consumer discretionary spending away from jewelry to more experience-based purchases.