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

Susan M. Jacques
Events & AwardsOct 03, 2023
Gem Awards to Honor Susan Jacques

The GIA president and CEO will receive the 2024 Gem Award for Lifetime Achievement.

De Beers new CFO Richard Lawson
SourcingOct 03, 2023
De Beers CFO Steps Down

Sarah Kuijlaars is leaving the company and will be replaced internally by Head of Planning and Business Development Richard Lawson.

Pandora Game of Thrones Jewelry
CollectionsOct 03, 2023
Pandora’s New Game of Thrones Collection Is Here

Fans of the series can shop for direwolf charms, dragon earrings, and more.

BroughtToYou_Image_R02_V02_LK-01.jpg
Brought to you by
Top 5 Ways to Promote Safety and Security Awareness Among Your Staff

Awareness is essential to proactive protection. Learn how to promote and maintain safety and security awareness in your business.

SourcingOct 03, 2023
2 Lucara Execs to Step Down in Wake of CEO Change

Chief Financial Officer Zara Boldt and Vice President of Technical Services John Armstrong will leave the company later this year.

Weekly QuizSep 29, 2023
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
Entrance to Jwaneng diamond mine in Botswana
SourcingOct 02, 2023
De Beers, Botswana One Step Closer to Finalizing Agreement

The two have signed “heads of terms” for the tentative 10-year sales agreement they reached in June.

Ali Weiss jewelry store and piercing studio in Roslyn, New York
IndependentsOct 02, 2023
There’s a New Piercing Studio on Long Island

Ali Weiss Jewelry has opened its second store in Roslyn, New York.

Dialog Solutions
Brought to you by
A Conversation with Dialog Solutions

Do you always want the right diamonds at the right price in your store? Introducing Dialog, the world’s first diamond subscription service.

Ashley Kets
Events & AwardsOct 02, 2023
WJA Foundation Awards First Helene Fortunoff Scholarship

A New Hampshire store manager is the inaugural recipient of the grant for up-and-coming women in retail.

Lorraine West Nipple Collection jewelry
CollectionsOct 02, 2023
Lorraine West’s New Collection Points to the Power of Women

Available exclusively at Greenwich St. Jewelers, the “Nipple Collection” will benefit Living Beyond Breast Cancer.

Graphic for My Next Question episode on lab-grown diamonds
Recorded WebinarsSep 29, 2023
The Lab-Grown Diamond Market: Where Are We Now?

Watch as Edahn Golan, Sherry Smith and Avi Levy join Michelle Graff to talk pricing and trends in this controversial corner of the market.

692-carat rough diamond from the Karowe Mine
SourcingSep 29, 2023
Lucara Severs Ties With HB Antwerp

The two companies initially partnered during the pandemic and had just signed a 10-year sales agreement in November 2022.

Sonya K. Taylor diamond tennis necklace with tourmaline drop
CollectionsSep 29, 2023
Piece of the Week: Sonya K’s Versatile Necklace

A classic diamond tennis necklace gets a whole lot cooler with a removable pendant.

Columbia Gem House Woz Cuts
EditorsSep 28, 2023
The Gemstone World Is In Its Unique Cut Era

Associate Editor Lauren McLemore recently spoke with Columbia Gem House’s Eric Braunwart about the uptick in non-traditional gemstone cuts.

Pre-Owned Luxury by Rocksbox logo
MajorsSep 28, 2023
Signet-Owned Rocksbox Now Sells Pre-Owned Fine Jewelry

“Pre-Owned Luxury by Rocksbox” offers secondhand jewelry from Kay, Zales, and Jared to members and non-members.

Gold Roman Bracelet from the British Museum
CrimeSep 28, 2023
Have You Seen Jewels Like These? The British Museum Wants to Know

The museum is asking for the public’s help in finding thousands of pieces of ancient gold jewelry and gemstones stolen from a storeroom.

Pam Waclawski The Kingswood Company
MajorsSep 28, 2023
The Kingswood Co. Names New VP, Wins Award

The company was recognized for one of its private-label, consumer-focused jewelry care lines.

Chaumet diamond necklace, circa 1900
AuctionsSep 27, 2023
Antique Jewels Shine at Bonhams London

A rare Chaumet necklace and 20th-century sapphire ring sold for double their estimates.

Stock image of rough diamonds from De Beers
SourcingSep 27, 2023
India Calls for 2-Month Moratorium on Rough Diamond Imports

The plea comes against a backdrop of declining demand and falling prices.

Hands pushing a shopping cart
SurveysSep 27, 2023
Consumer Confidence Falls in September Amid Rising Recession Fears

Shoppers also expressed concern about rising prices, higher interest rates, and political uncertainty.

   Platinum Guild International logo
Events & AwardsSep 27, 2023
PGI to Dole Out $500K in Business Grant Program

Participants from the first round of grants saw up to a 900 percent increase in their platinum sales.

Citizen Tsuki-yomi A-T moon phase watch
WatchesSep 26, 2023
Citizen Launches the Tsuki-Yomi A-T Timepiece

According to the watchmaker, it features the first light-powered atomic timekeeping moon phase movement.

Sally Nelson Exclusively Diamonds
IndependentsSep 26, 2023
Sally Nelson, Founder of Exclusively Diamonds, Dies at 86

The former teacher, described as “a pioneer for women-owned businesses,” opened her own jewelry store in 1980.

Crescendo, a 147.96-carat golden citrine by John Dyer for Somewhere In The Rainbow
Events & AwardsSep 26, 2023
2023 Spectrum Awards Entry Deadline Extended

The contest is now open for submissions until Oct. 10.

Instore show logo
Events & AwardsSep 26, 2023
Instore Announces Dates for 2024 Show

The annual event will return to Rosemont, Illinois next August.

Gold holiday gift boxes
SurveysSep 26, 2023
Mastercard Makes Its 2023 Holiday Prediction

According to SpendingPulse, retail sales will increase in November and December but not necessarily for jewelers.

Stock image of hands in handcuffs
CrimeSep 25, 2023
Oregon Jeweler Accused of Selling Lab-Grown Diamonds as Natural

Police say Douglas Wayne Gamble also swapped natural diamonds for synthetic stones and failed to return customers’ repairs.

×

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

Additionally, paste this code immediately after the opening  tag: