Signet Raises Guidance Again, Expands Selection of Lab-Grown Diamonds
Its additions include an exclusive lab-grown diamond cut for Zales’ “Vera Wang True” line and a lab-grown option for Kay’s “Leo” cut.
![An 18-karat white gold 1 3/8-carat emerald-cut diamond engagement ring from the Monique Lhuillier Bliss collection at Signet Jewelers’ banner Kay Jewelers. The collection has performed well since its launch, according to the company’s recent quarterly results. 20211202_Monique Lhuillier.jpg](https://uploads.nationaljeweler.com/uploads/5a61cdf637cc96615fd16e4c309a0196.jpg)
In the third quarter ending Oct. 31, total sales were up 18 percent to $1.54 billion with same-store sales climbing 19 percent.
Compared to the third quarter of fiscal 2020, pre-pandemic, total sales were up 29 percent with same-store sales rising 37 percent.
Year-to-date, Signet’s sales have totaled $5.01 billion, up 65 percent year-over-year.
Quarterly brick-and-mortar same-store sales rose 20 percent year-over-year in the third quarter and were up 29 percent compared with pre-pandemic levels.
Online sales increased 14 percent year-over-year to $273.1 million. When compared with pre-pandemic levels, online sales have nearly doubled, jumping 96 percent.
“While uncertainties remain in the macro environment, our strategies are working, as evidenced by strong conversion rates and higher average transaction value,” Signet Jewelers CEO Gina Drosos said in a press release on the Q3 results.
“We have built a healthy operating structure enabling transformative investments that are attracting new customers and driving loyalty. Our data-driven customer insights and planning helped us secure earlier receipt of our holiday assortment and ensure no significant disruptions to our supply chain or labor needs.”
Signet Jewelers is cutting costs, expecting to see a four-year cumulative saving of $400 million through the end of fiscal 2022, but it’s also investing in technology to bolster its efficiency.
During an earnings call Thursday morning, Drosos described its data-driven labor model that plans out staffing needs, noting productivity is up 75 percent.
The company is also using a digital simulation of its supply chain to cut back on shipping delays and other logistical issues.
Signet is upping its distribution capacity by 25 percent, said Drosos, including adding local distribution points via its ship-from-store option.
After introducing a buy online, pick-up in store service last year, the jeweler has since expanded the program to 2,100 locations, Drosos said.
The investments have extended to its employees via a raise in wages, expanded benefits, training and development opportunities, and career growth, she said.
In North America, where Signet’s banners include Kay, Jared and Zales, same-store sales rose 20 percent year-over-year, and were up 39 percent compared with pre-COVID levels.
Brick-and-mortar same-store sales climbed 22 percent compared with last year and were up 31 percent compared with pre-pandemic levels.
Online sales in the region rose 15 percent compared with last year and nearly doubled, up 98 percent, when compared with before COVID.
The average transaction value increased 15 percent year-over-year, with the number of transactions up 4 percent.
In the U.K., same-store sales were up 9 percent compared with last year and up 18 percent compared with pre-pandemic levels.
Brick-and-mortar U.K. sales rose 9 percent year-over-year, and were up 18 percent when compared with before COVID. E-commerce sales increased 9 percent year-over-year and were up 72 percent compared with pre-pandemic levels.
Average transaction value dipped 4 percent while the number of transactions rose 13 percent year-over-year.
“Our merchandising teams have used our data to build and tier our [lab-grown diamond] assortment in a way that doesn’t compete with natural stones.” — Signet CEO Gina Drosos
Looking at sales by category, Signet’s bridal sales climbed 14 percent year-over-year in the quarter and are up 58 percent in the first nine months of the year.
Fashion jewelry sales were up 30 percent in the quarter and 85 percent in the nine-month period. Watch sales rose 38 percent in the quarter and 65 percent in the nine-month period.
Sales in the “others” category, which includes repairs, gifts, and other non-jewelry items, dipped 1 percent year-over-year, but were up 40 percent in the nine-month period.
Signet has expanded its assortment of lab-grown diamonds, Drosos said on the call.
“Our merchandising teams have used our data to build and tier our [lab-grown diamond] assortment in a way that doesn’t compete with natural stones,” she said.
For select styles, customers can choose a lab-grown stone with higher carat weight or clarity.
In addition, there will be an exclusive lab-grown diamond cut introduced into Zales’ “Vera Wang True” line and a lab-grown diamond option for Kay’s “Leo” cut through its “Leo Legacy” line.
Breaking down Signet’s Q3 performance by banner, Kay Jewelers posted quarterly sales of $573.4 million, up 17 percent year-over-year and up 67 percent in the first nine months of the year.
Zales posted quarterly sales of $291.9 million, up 16 percent year-over-year and up 66 percent in the nine-month period.
“Kay and Zales are appealing to increasingly differentiated consumer segments,” said Drosos.
While both banners attract bridal customers, almost 30 percent of new Zales customers are looking to buy jewelry for themselves, up 4 percent compared with two years ago.
At Kay, 65 percent of new customers are making a milestone purchase or buying a gift, 7 percent higher than two years ago.
“We plan our assortments with these journeys as our compass. We’re able to introduce newness with much better success rates because our customers are more precisely defined and because our assortments are relevant to the journey our customers are on,” said Drosos.
The new Monique Lhuillier x Kay Jewelers collection, launched at the end of September, has generated $2 million in sales.
At Jared, quarterly sales were up 19 percent to $277.1 million and up 60 percent in the nine-month period.
A new loyalty program, Vault Rewards, is being tested out at select Jared stores and is expected to roll out to all Signet banners, said Drosos.
The program gives customers exclusive discounts, a trial membership to newly acquired jewelry rental subscription service Rocksbox, and unlimited jewelry cleaning while Signet learns more about its customers.
Piercing Pagoda saw sales increase 19 percent in the quarter and nearly double in the nine-month period, up 95 percent.
The kiosk-centric brand recently underwent a name change, now called Banter by Piercing Pagoda.
E-tailer James Allen posted quarterly sales of $90.4 million, up 18 percent year-over-year and up 63 percent in the nine-month period.
Signet recently acquired Diamonds Direct but said it will include its results within the company’s North America segment rather than reporting it as a separate banner.
As for the possibility of new acquisitions, Chief Financial Officer Joan Hilson said the company’s main priority is growth investments.
“We always stay open-minded to what might be another way to bring new capabilities, especially new opportunities to learn,” she said on the call.
Looking at its store count, Hilson said the company expects to close 75 stores across its banners in fiscal 2022 and open 85 stores.
Most of the openings will be Banter by Piercing Pagoda locations, due to its strong-than-expected performance in select locations and favorable leases.
For the fiscal year ahead, Signet upped its financial guidance again, noting that the company’s sales momentum continued through Black Friday and Cyber Monday.
Signet is expecting revenue to reach $7.41-$7.49 billion, compared with its prior guidance of $7.04- $7.19 billion.
Same-store sales are expected to grow 41 to 43 percent, up from its prior guidance of 35 to 38 percent.
Looking to the fourth quarter, revenue is expected to reach $2.40-$2.48 billion with same-store sales growth in the range of 6 to 9 percent.
Signet’s updated guidance depends on a variety of factors, including the “magnitude and duration of COVID-19,” particularly the Omicron variant, and the degree of the shift of consumer discretionary spending away from jewelry to more experience-based purchases, it said.
The Latest
![Direct-to-consumer retail brand Diamonds Direct has opened a store in the Atlanta neighborhood of Buckhead, an area known for its upscale malls. Diamonds Direct Atlanta store](https://uploads.nationaljeweler.com/uploads/2e6577afc9470ba1c1de327fad397366.jpg)
It’s the Signet-owned banner’s first location in Georgia.
![These “Double Loop” earrings feature a drop-cut amethyst sitting atop the lower hoop, totaling 1.60 carats between both earrings. The hoops are made of silver covered in “pistacchio” colored enamel, while 9-karat yellow gold holds the stones in place and connect the two hoops behind the earlobe ($1,770). Bea Bongiasca’s Double Loop Earrings](https://uploads.nationaljeweler.com/uploads/f338ef6b4603be3c97765f833b831ca0.jpg)
Commemorate “brat summer” with these green hoops.
![The skyline of downtown Providence, Rhode Island. Jewelers of America held one of its Multifacted Learning Workshops there on July 17 and National Jeweler Editor-in-Chief Michelle Graff tagged along. Stock image of Providence, Rhode Island, skyline](https://uploads.nationaljeweler.com/uploads/4ec5b02d4cbaaaa2283bdcf6820950a4.jpg)
Editor-in-Chief Michelle Graff returns from Rhode Island with thoughts about in-store shopping and a trends report.
![Untitled design.jpg](https://uploads.nationaljeweler.com/uploads/583fbcb2bb839782810080debef35d3c.jpg)
As the demand for lab-grown diamond jewelry may still be increasing, the most notable change we are likely to see is price stabilization.
Sponsored by Gemological Institute of America
![](https://uploads.nationaljeweler.com/uploads/99a46b30cc354962ac2e29ecd113587a.jpg)
![Earlier this month, online giant Amazon and the Better Business Bureau filed a joint federal lawsuit against ReviewServiceUSA.com for allegedly selling fake reviews, both positive and negative. Amazon package outside door](https://uploads.nationaljeweler.com/uploads/27fce4225a38900d54a5536ce523a22d.jpg)
They claim ReviewServiceUSA.com was selling both positive and negative reviews of products and businesses.
![A shot of the Venetia diamond mine in South Africa, owned by De Beers Group. The diamond miner and marketer saw revenue drop 21 percent and rough diamond sales decline 20 percent in a “weak” market for diamonds. De Beers’ Venetia diamond mine](https://uploads.nationaljeweler.com/uploads/a1f16ceaaba662e80385166060d192a7.jpg)
Lab-grown diamond sales in the United States and ongoing economic challenges in China are impacting natural diamond demand.
![1872 x 1052 Gemolite.jpg](https://uploads.nationaljeweler.com/uploads/9d60901b44425a53b9010301897a3bbc.jpg)
GIA®’s most advanced microscope has new features to optimize greater precision and comfort.
A longtime member of IJO, she’s remembered for her passion for design, learning, and environmentalism.
![Volunteers and Shane Co.’s corporate team from all 22 locations of the family-owned jewelry chain have begun packing backpacks with school supplies for teachers to distribute to their students this school year. Shane Co. and the Kids in Need foundation logo](https://uploads.nationaljeweler.com/uploads/1c5abfb36ec775724f014f47bfbb47fc.jpg)
The fine jewelry retailer filled backpacks with back-to-school essentials for students in 13 states.
![Chaumet, a Parisian jeweler owned by LVMH, has designed the Olympic and Paralympic Games medals. Chaumet Paris 2024 Olympics medals](https://uploads.nationaljeweler.com/uploads/7831b3a738baddfc7d783e6df0fbf796.jpg)
The Parisian brand is the first jewelry company in the history of the Olympic and Paralympic Games to design the medals.
![The acquisition of Union Life & Casualty by Jewelers Mutual will help strengthen both the pawn market and the insurance industry, said JM. Jewelers Mutual and Union Life and Casualty logos](https://uploads.nationaljeweler.com/uploads/195925667226ecfc51b4e1bb09607143.jpg)
Union Life & Casualty will join JM Insurance Agency Partners, expanding the provider’s pawnbroker coverage.
![The winner of this year’s Lonia Tate scholarship, Bradlei Smith will receive the opportunity to earn her Graduate Gemologist diploma from GIA and, following graduation, an internship at Ben Bridge Jeweler in Seattle. Bradlei Smith](https://uploads.nationaljeweler.com/uploads/996834935ae30a7a1195db8b9db6cb7d.jpg)
Los Angeles-based Bradlei Smith was selected for this year’s award.
![Peter Smith is an industry consultant, speaker, sales trainer, and author. He can be reached via email at TheRetailSmiths@gmail.com. National Jeweler columnist Peter Smith](https://uploads.nationaljeweler.com/uploads/bec7295a7f478778b1c196e6d81e7cd9.jpg)
In his latest column, Smith shares multiple reasons why people who look at the glass as being hall full often make better salespeople.
![De Beers Group mined 6.4 million carats of diamonds in the second quarter of 2024, down from 7.6 million in the same period last year. (©De Beers Group/Photo credit: Ben Perry @ Armoury Films) De Beers rough diamond display](https://uploads.nationaljeweler.com/uploads/80cd02b1c8384f4b2efda0bcdf6a75e1.jpg)
The company also reported the $150 million sale of an iron ore royalty right, part of its ongoing effort to divest “non-core” assets.
![In honor of its summer bridal event, Long’s Jewelers is partnering with Wequassett Resort and Golf Club on Cape Cod in Massachusetts, and jewelry brand JB Star on a vacation giveaway. Long’s Jewelers giveaway promo](https://uploads.nationaljeweler.com/uploads/4e7a90944c4e8875a4f3818dbe26b28b.jpg)
The giveaway is part of the New England jeweler’s summer bridal event.
![L.A.-based flower designer, Sophia Moreno-Bunge models Guzema’s “Hidden Beauty” collection in front of a garden in Rustic Canyon in Santa Monica, California. Sophia Moreno-Bunge of Isa Isa modeling Guzema’s Hidden Beauty collection](https://uploads.nationaljeweler.com/uploads/6f3822623eb7fd2f6468f82825194cb1.jpg)
The ad features three celebrity florists creating floral sculptures while wearing jewelry by Guzema.
![The Entrepreneurship Grants program supports winners with financial aid to scale their businesses and increase their societal impact, said Diamonds Do Good. Pictured here are three of the 13 winners, top right is Tresia Shituula, and bottom row left to right, are Monkgogi Moshaga and Mohamed Samu. Tresia Shituula, Monkgogi Moshaga, Mohamed Samu](https://uploads.nationaljeweler.com/uploads/a7c9b87301b76a9446f6522747ce5b95.jpg)
The grant provided a total of $100,000 to support 13 entrepreneurs from diamond communities in Africa and India.
![Ghazi Osta, better known as Gus, was the owner and president of Volusia Gold & Diamond, a store he and his wife, Leigh Osta, opened in 1986. He was shot and killed inside the store Friday afternoon after a brief argument with a regular customer. (Photo courtesy of Volusia Gold & Diamond Facebook page) Ghazi “Gus” Michel Osta](https://uploads.nationaljeweler.com/uploads/c8c1fa3df746cbd364915a98dcac9d21.jpg)
Ghazi Michel Osta, or “Gus,” was killed Friday by an 83-year-old man said to be a frequent customer at his store, Volusia Gold & Diamond.
![Elyssa Jenkins-Pérez (left) is the Responsible Jewellery Council’s new head of North American development, and Effie Marinos is its new specialist advisor for technical standards. Elyssa Jenkins-Perez and Effie Marinos](https://uploads.nationaljeweler.com/uploads/94332af0c7a776e7a8c36fabf76baa5f.jpg)
The organization also announced Effie Marinos as its new specialist advisor for technical standards, as well as four other appointments.
![Karen Rentmeesters, who joined the Antwerp World Diamond Centre in 2010, will take on the role of CEO. Karen Rentmeesters](https://uploads.nationaljeweler.com/uploads/3256fcc71cd43a399055c61f68486269.jpg)
Rentmeesters has served as interim CEO since April following former CEO Ari Epstein’s resignation.
![Longtime Washington, D.C., jeweler Brian Mann (right) with his wife Jessie Mann, an artist who custom-paints porcelain Limoges Boxes, at a 2016 Jewelers of America member event. Mann, the longtime co-owner of David Mann Jewelers, died June 21 at age 70. Brian and Jessie Mann](https://uploads.nationaljeweler.com/uploads/be4debc6e0b3198943a66ef0e2197c2c.jpg)
Mann, whose family’s jewelry store was located inside the Pentagon, is remembered for being a thoughtful champion of the industry.
![The 1916 Company recently opened a new Tudor boutique in Denver’s Cherry Creek Shopping Center. Tudor store in Denver](https://uploads.nationaljeweler.com/uploads/9f8600ea53ed731963331ebd28a10d16.jpg)
The 500-square-foot boutique is located in Denver’s Cherry Creek Shopping Center.
![This necklace from Messika’s “So Move Max” set is made of yellow gold with 19.18-carats of brilliant-cut diamonds and designed with circle motifs that move within the links (price upon request). Messika’s So Move Max Necklace](https://uploads.nationaljeweler.com/uploads/14c78af4a4e8c6b996a81bbb5a5bc69f.jpg)
Dance all night long with the “So Move Max” set’s necklace.
![On Sept. 1, Julien Tornare (left), current CEO of TAG Heuer, will become CEO of Hublot. Antoine Pin, now the general manager of Bulgari’s watch business, will take over Tornare’s role as CEO of TAG Heuer. (Images courtesy of LinkedIn) Julien Tornare and Antoine Pin](https://uploads.nationaljeweler.com/uploads/b24627b34ece895ddd254bae22751fb8.jpg)
Luxury giant LVMH is reshuffling the leadership in its watches division.
![A rendering of a billboard from Etsy’s new campaign. The campaign is designed to highlight the platform’s creators and how their products are made. Etsy billboard rendering in NYC](https://uploads.nationaljeweler.com/uploads/9a94f394f326b90dc1c9da6a711c5e09.jpg)
Sellers and shoppers have spoken out against a rise in mass-produced merchandise on the platform meant to highlight handmade goods.
![Ariana Grande said she cannot wait “to inspire others to embrace their own unique sparkle,” as Swarovski’s brand ambassador. (Photo credited to Mert Alas and Marcus Piggot for Swarovski) Ariana Grande Modeling in Swarovski Jewelry](https://uploads.nationaljeweler.com/uploads/adaa79dce0741a275427155078691611.jpg)
The celebrity will star in Swarovski’s holiday campaign.