Financials

Signet Cuts Ties With Russian-Owned Companies

FinancialsMar 17, 2022

Signet Cuts Ties With Russian-Owned Companies

The news preceded announcement of the company’s full-year results, which were strong.

20220321_Signet.jpg
Signet Jewelers spoke about the Russian invasion of Ukraine and the impact on its business during its earnings call Thursday.
Akron, Ohio—Signet Jewelers Ltd. opened its full-year earnings call by addressing the elephant that’s been in the room since late February—the Russian invasion of Ukraine and its impact on the retailer’s business.

The jeweler said last week in a press release about donating to the Red Cross Ukraine that it had suspended all business interactions with Russian-owned entities since the beginning of the invasion, a point its leader reiterated Thursday morning.

“Russian diamonds, which we have suspended, were really a small impact for us, but we’re taking a bigger stand on this issue because we think that it’s so important,” said Signet CEO Virginia C. Drosos on the call.

She noted that Signet is a founder of the Responsible Jewellery Council and a member of the World Diamond Council, and has its own in-house sourcing protocol.

“This helps us dig back into the supply chain, not only to know that our vendors are operating ethically but that everyone on the supply chain from mine to market is operating on the standards that we require.”

Drosos said the company has been working with its vendors and leveraging its vertical integration and sourcing to mitigate any potential price increases related to the ban of Russian diamonds.

“We believe that the pricing pressure will impact Signet less than other industry players and the retail segment as a whole,” she said.

The Signet Love Inspires Foundation has pledged $1 million to the Red Cross Ukraine and will match donations from Signet employees two-to-one, up to $1,000 per person per year.

“We will continue to look for additional opportunities to support the people of Ukraine and our thoughts and prayers are with them all,” said Drosos.

 Related stories will be right here … 

Looking at its quarterly performance ending Jan. 29, Signet’s sales totaled $2.8 billion, up 29 percent year-over-year, with same-store sales climbing 24 percent, the retailer reported.

“The investments we have made in our ‘Connected Commerce’ capabilities and differentiated banner assortment and marketing have driven meaningful share gains, with all categories and all banners outpacing jewelry industry growth,” Drosos said in a press release.

Compared with pre-pandemic 2020, quarterly sales were up 31 percent with same-store sales up 35 percent.

Brick-and-mortar sales rose 35 percent year-over-year and were up 22 percent compared with 2020, while online sales increased 9 percent year-over-year and surged 85 percent compared with 2020.

For the full year, the jeweler increased its share of the U.S. jewelry market, which is now at 9 percent.

Signet’s full-year sales totaled $7.8 billion, up 50 percent year-over-year, with same-store sales up 49 percent.

Compared with pre-pandemic 2020, annual sales were up 28 percent with same-store sales up 34 percent.

Brick-and-mortar sales rose 56 percent year-over-year and were up 17 percent compared with 2020. Online sales, meanwhile, were up 28 percent year-over-year and more than doubled percent compared with 2020, up 101 percent.

On Thursday’s earnings call, Drosos noted that a record number of couples are expected to get married in the United States this year and Signet is ready to serve them.

Around 2.5 million couples will tie the knot in 2022—the most weddings since 1984—and spend an average of $24,300 on their wedding, predicted Shane McMurray, founder and CEO of market research company The Wedding Report Inc.

Rocksbox, the Signet-owned jewelry rental platform’s subscription service, has been testing out a bridal box to cater to the market with affordable jewelry, said Drosos.

Vacations are also returning, she said, with consumers willing to spend money on flights priced significantly higher than pre-pandemic rates. Though vacations and jewelry often battle it out for discretionary dollars, Drosos framed it as consumers being ready to spend large amounts of money in spite of inflation.

She also noted that double-digit increases on travel costs will be bigger than any price increases Signet customers might see as a result of the ban on Russian diamonds.

In other company news, a new loyalty program, Vault Rewards, has been tested out at select Jared stores and may soon roll out to all Signet banners, said Drosos.

Looking at North America, where Signet’s banners include Kay, Jared and Zales, fourth-quarter sales totaled $2.6 billion, with same-store sales up 22 percent.

Compared with 2020, quarterly sales were up 33 percent with same-store sales up 38 percent.

Brick-and-mortar sales in North America were up 31 percent year-over-year and up 24 percent compared with 2020.

Online sales in the region were up 14 percent year-over-year and up 89 percent compared with 2020.

Average transaction value (ATV) was up 17 percent while the number of transactions inched up 4 percent compared with last year.

For the full-year, sales in North America totaled $7.3 billion, with same-store sales up 50 percent.

Compared with 2020, annual sales were up 31 percent with same-store sales up 38 percent.

Full-year brick-and-mortar sales in North America were up 56 percent year-over-year and up 20 percent compared with 2020, while online sales in the region rose 31 percent year-over-year and more than doubled compared with 2020, up 104 percent.

ATV was up 14 percent while the number of transactions increased 29 percent compared with last year.

Drosos differentiated Signet from retailers facing supply chain issues, which saved the retailer during the holiday season, highlighting the company’s position as a De Beers sightholder and its cut-and-polish facility in Botswana.

The company has also sub-contracted seven manufacturing facilities in India to work only for Signet, she said.

Signet’s production capacity increased ten-fold last year, said Drosos, adding that its AI-driven inventory management puts the company in a competitive position.

Looking ahead to fiscal 2023, the company expects to see first-quarter revenue between $1.78 billion and $1.82 billion while full-year revenue is expected to total between $8.03 billion and $8.25 billion, a year-over-year increase of 3 to 6 percent.

Signet said it expects the jewelry market as a whole to be down low-single digits to flat this year.

“Our fiscal 2023 guidance reflects top-line performance that we believe will outpace the market while also delivering a double-digit operating margin by leveraging sustainable advantages, notably fleet optimization, inventory efficiency and an enhanced labor model,” Chief Financial Officer Joan Hilson said in a press release.

The Latest

National Jeweler columnist Peter Smith
ColumnistsJan 21, 2025
Peter Smith: Sales Training’s Dirty Little Secret

Peter Smith pulls back the curtain on the often misinterpreted, and sometimes maligned, world of sales training.

Lord Jewelry brown and white diamond ring
TrendsJan 21, 2025
Amanda’s Style File: Decadent Mocha Mousse

Pantone’s 2025 Color of the Year takes the form of jewelry through gemstones and enamel that look just as delicious as mocha mousse.

Charms from designer Jenna Blake
Policies & IssuesJan 21, 2025
These Designers and Retailers Are Raising Money for LA Wildfire Relief

From raffles to auctions to donations, the industry is working to aid charities in Los Angeles amid the raging wildfires.

Resolutions - 2025.jpg
Brought to you by
3 New Year’s Resolutions for Jewelry Lovers

The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.

Diamonds Do Good
SourcingJan 21, 2025
Diamonds Do Good Adds 2 Board Members

Julia Hackman Chafé and Monica Elias have joined the organization’s board of directors.

Weekly QuizJan 16, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Picchiotti Classic Blue and Green Necklace
CollectionsJan 17, 2025
Piece of the Week: Picchiotti’s Transformable ‘Classic Blue and Green’ Necklace

The necklace features a sapphire drop weighing more than 9 carats that detaches to transform into a ring.

Jameel Mohammed
MajorsJan 17, 2025
Tiffany & Co., CFDA Name First Winner of Jewelry Designer Award

Jameel Mohammed, founder of Afrofuturist brand Khiry, will receive a cash prize and a one-year paid fellowship with Tiffany & Co.

ride_or_die_1872x1052.png
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday Campaign

A Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’

Gold jewelry boxes with Lux Bond & Green logo
IndependentsJan 16, 2025
Lux Bond & Green to Open Sixth Location

The 127-year-old jeweler is planning to open a new store in Mystic, Connecticut.

Timex National Park Collection
WatchesJan 16, 2025
Timex Launches Collection of National Park Watches

The watches’ dials feature artwork celebrating the vibrant energy and unique landscapes of six of America’s national parks.

Elizabeth Taylor diamond line bracelet
AuctionsJan 16, 2025
Elizabeth Taylor’s Diamond Line Bracelet Going up for Auction

Offered by U.K. auction house Woolley & Wallis, the yellow diamond bracelet was a gift from Taylor’s good friend Michael Jackson.

JCK open registration graphic
Events & AwardsJan 16, 2025
JCK Las Vegas 2025 Open for Registration

The jewelry trade show returns to The Venetian Expo and The Venetian Resort in Las Vegas from June 6 to 9.

Iris Apfel
EditorsJan 15, 2025
The Jewelry I’d Bid On in Christie’s Iris Apfel Auction

Associate Editor Natalie Francisco highlights her favorite fashion jewelry pieces from the upcoming “Unapologetically Iris” auction.

Macy’s Herald Square New York City store
MajorsJan 15, 2025
Macy’s to Close 66 Stores as Part of Turnaround Strategy

The closures are part of the retailer’s plan to close 150 locations over a three-year period.

Jewelers Vigilance Committee Americans with Disabilities Act guide cover
Policies & IssuesJan 15, 2025
JVC Debuts Guide to Americans with Disabilities Act Compliance

The online guide is available for free and written with the jewelry industry in mind.

Jose Hess Design Award Trophy
Events & AwardsJan 15, 2025
Jose Hess Design Awards Open for Submissions

The awards honor the late Jose Hess, a founding member of AJDC and an award-winning jewelry designer.

Susan Jacques
GradingJan 14, 2025
GIA CEO, President Susan Jacques to Retire at the End of 2025

The grading lab said the search for her successor is underway.

Jewelry designer and National Jeweler guest columnist Jules Kim
ColumnistsJan 14, 2025
Jules Kim: Building Bridges Between Creators and Industry

In this special op-ed, designer Jules Kim calls on big brands to collaborate with independent creators instead of copying their designs.

Henry A. Hänni
GradingJan 14, 2025
Former SSEF Director Henry A. Hänni Dies

A pioneering figure in gemology, he is remembered for his spirit of generosity, curiosity, and joy.

Edouard Schneider
MajorsJan 14, 2025
Edouard Schneider Joins Messika as Chief Brand Officer

Schneider brings over 20 years of luxury and fashion industry experience to his role as a key member of the brand’s global leadership team.

Gemfields emeralds
SourcingJan 13, 2025
Zambia Reinstates 15% Export Duty on Precious Gemstones, Shocking Gemfields

Gemfields said the Zambian government revoked the 2019 suspension of the tax with no warning.

Woman’s silhouette with smart ring on finger
TechnologyJan 13, 2025
Ultrahuman Unveils Luxury Smart Ring

With versions in 18-karat gold and platinum, the wearables company is blending health technology and fine jewelry.

Brandee Dallow
Policies & IssuesJan 13, 2025
Brandee Dallow Elected President of Ethical Metalsmiths

The executive brings more than two decades of industry experience to the role.

Camille Zarsky and curated necklaces
IndependentsJan 13, 2025
The Seven Pops Up in Palm Beach

The New York City-based retailer is bringing its curation of jewels to a pop-up shop at Love Binetti in Palm Beach, Florida.

Jewelers Relief Fund logo
Policies & IssuesJan 10, 2025
Jewelers Relief Fund Reopened to Aid Victims of LA Fires

Created by JA and DCA, the fund is collecting money for jewelry businesses damaged by the wildfires in Los Angeles County.

Elsa Jin Mozi Brooch
TrendsJan 10, 2025
Piece of the Week: Elsa Jin’s ‘Mozi’ Brooch

Adrien Brody received his first Golden Globe while wearing the “Mozi” brooch, which depicts a spill of traditional Chinese calligraphy ink.

Paul Rowley, Sandrine Conseiller, Vipul Shah, and Kirit Bhansali
SourcingJan 10, 2025
De Beers, GJEPC Partner to Promote Natural Diamonds

The pair will work together to support independent retailers in India with marketing assets, training materials, and other tools.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy