Financials

Signet’s Bridal Strong in Q1 as ‘Year of the Wedding’ Continues

FinancialsJun 10, 2022

Signet’s Bridal Strong in Q1 as ‘Year of the Wedding’ Continues

From its bridal offerings to a major lawsuit settlement, here are five things to know about the company’s first quarter results.

20220610_Signet header.jpg
A lab-grown diamond engagement ring by designer Pnina Tornai from her most recent collaboration with Signet-owned Jared. Here are five things to know about Signet’s recent first quarter results.
Akron, Ohio—Signet Jewelers Ltd. started its fiscal year on high note.

Signet is the parent company of several large jewelry store chains, including Zales, Jared and Kay Jewelers.

The jewelry giant’s bridal jewelry did especially well, and the company is maintaining its fiscal 2023 outlook in light of inflationary pressures, among other issues impacting consumers.

Here are five things to know about its recent earnings report, released Thursday.

Signet had a good first quarter.

For the quarter ending April 30, Signet’s sales totaled $1.8 billion, up 9 percent year-over-year, with same-store sales climbing 3 percent.

“Signet’s strong performance this quarter reflects our team’s successful execution and agility amidst retail headwinds,” said CEO Virginia C. Drosos in a press release.

“We generated nearly 9 percent top-line growth, including 2.6 percent organic sales growth, enabled by our healthy inventory position, connected commerce capabilities and data-driven marketing.”

The company has also been giving more attention to its services segment in recent years, including repairs.

Its services division reported a 15 percent year-over-year increase in revenue.

North American sales were strong while international sales surged.

Signet’s North American banners include Zales and Kay Jewelers as well as Peoples in Canada.

Signet’s first-quarter sales in the region totaled $1.7 billion, with same-store sales down 5 percent year-over-year.

The lower same-store sales were attributed to a higher average transaction value but fewer transactions. The average transaction value was up more than 19 percent year-over-year and up 30 percent compared with pre-pandemic fiscal 2020.

Signet’s international banners include Ernest Jones and H. Samuels.

International sales totaled $110 million, nearly doubling year-over-year, up 92 percent.

Same-store sales more than doubled, up 103 percent, which Signet said reflected higher average transaction values and number of transactions. There were also more operating restrictions last year than in the current fiscal year.

 Related stories will be right here … 

Signet is maintaining its fiscal outlook.

Signet is expecting a good year ahead, but remains cautious in light of inflationary pressures and a return to travel.

Revenue for fiscal 2023 is expected to be in the range of $8.03 billion to $8.25 billion, above last year’s total of $7.8 billion.

“To be very clear, our fiscal 2023 outlook factors in a level of pressure on the consumer similar to what we’re currently experiencing. Our outlook does not anticipate a material worsening of macroeconomic factors, which could impact consumer spending patterns and have [an] associated impact on our business performance,” said Chief Financial Officer Joan Hilson on the company’s earnings call Thursday morning.

“That said, we are committed to controlling what we can, such as our merchandise assortment, tailored marketing, and cost disciplines,” she added.

Drosos is confident in the company’s ability to weather any headwinds it might encounter.

“We believe no other company in the jewelry industry has this same ability to adjust dynamically to market conditions across its banner portfolio, and continue to grow even in the face of challenges to a particular part of the business,” she said.

The bridal category put on an impressive performance.

This year is expected to be the “year of the wedding,” with about 2.5 million ceremonies expected to take place.

“In our big businesses, we delivered more than $80 million more in total bridal sales than in Q1 last year,” Drosos said on the call.

The company has seen an increase in sales of wedding bands, anniversary bands, bridal party jewelry, and gifts for the bride and groom, she said.

“Weddings are revenue drivers for Signet and an opportunity to establish lifetime relationships, not only with brides and grooms, but entire wedding parties. They are a critical point of entry, which we are capitalizing on.”

Signet has settled a long-standing legal battle.

For years, the company’s Sterling Jewelers division has been in a contentious legal battle with a group of women who say when they worked for Sterling, they were paid less than their male colleagues and passed over for promotions in favor of less qualified men.

After 15 years of legal back-and-forth, Signet announced it has reached a $175 million settlement in the case.

Drosos made a point of highlighting how the company has altered its management practices in recent years.

She noted the company’s $15 minimum wage, employee benefits, leadership development, and training.

“And now, we've settled this nearly 15-year-old legal matter, so we can continue our focus on an inclusive and highly engaged culture that will allow our company to truly shine,” she said.

The Latest

De Beers Ryan Perry and David Prager
SourcingDec 04, 2023
David Prager To Leave De Beers in 2024

Ryan Perry, who has been with De Beers since 2002, also will be leaving the company next year.

Chrono24 ChronoPulse
WatchesDec 04, 2023
Chrono24 Debuts the ‘Dow Jones’ for Luxury Watches

The watch seller’s new index tracks sales data from 14 brands, including Rolex and Patek Philippe.

David Bouffard Signet Jewelers
MajorsDec 04, 2023
David Bouffard to Leave Signet, RJC

The industry veteran will step down from both roles in April 2024.

De Beers | Diamonds Falling
Brought to you by
The Most Important “C” in Diamonds: Confidence!

Without the ability to instill confidence within the industry and directly to the consumer, a diamond holds very little value.

David Webb turquoise and lapis ring
TrendsDec 04, 2023
Amanda’s Style File: Decadent December

Tanzanite, turquoise, and zircon are all options for December babies, who sometimes “get the birthday shaft,” Amanda Gizzi writes.

Weekly QuizNov 30, 2023
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
Lightbox x Roséate Light Wand pendants
Lab-GrownDec 01, 2023
Lightbox Teams Up With Brand Founded by Former Tiffany Exec

The lab-grown diamond brand also collaborated with the website The Future Rocks on a collection launching today.

Muzo emerald and argyle pink diamond necklace
CollectionsDec 01, 2023
Piece of the Week: Muzo’s Emerald and Argyle Pink Diamond Necklace

It’s the hero piece of the newest "Green Jewel" collection, a collaborative offering from the two mines.

Platinum  Guild International Diamond Rings
Brought to you by
If It’s Custom, Make It Platinum

With holiday proposals right around the corner, encourage your customers to go for platinum when making the big purchase.

Pink Supreme Diamond
AuctionsNov 30, 2023
This Pink Diamond Reigned Supreme in Hong Kong

The 15.48-carat fancy intense “Pink Supreme” topped Christie’s fall jewelry auction in Asia, while a Patek Philippe led the watch sale.

Claire’s CFO COO Chris Cramer
MajorsNov 30, 2023
Claire’s Hires Former Bath & Body Works Exec as CFO, COO

Chris Cramer, who also spent time at Gen Z intimates brand Parade, will take on the dual role.

133 carat yellow diamond
AuctionsNov 30, 2023
Sotheby’s To Auction 133-Carat Yellow Diamond

The stone headlining the upcoming sale could fetch up to $5 million.

Kwiat diamonds
IndependentsNov 30, 2023
Frank Adams Rolls Out Kwiat’s ‘Mine to Shine’ Program

The retail offering lets customers track their diamond’s journey.

Diamond development hub in Angola
SourcingNov 29, 2023
Largest New Diamond Mine of the Decade Coming Online in Angola

The Luele mine is expected to eventually make the country the world’s third-largest diamond producer.

Holiday shoppers holding bags
SurveysNov 29, 2023
Holiday Shoppers Broke a Record This Weekend, Says NRF

From Thanksgiving through Cyber Monday, 200.4 million consumers shopped online and in stores.

Cast StyleBar Nordstrom
MajorsNov 29, 2023
Cast Debuts at Nordstrom, Closes on More VC Funding

The growing company also plans to open more of its own boutiques.

20180509_Buffett-header.jpg
EditorsNov 29, 2023
Warren Buffett on Success, Mistakes and Betting on America

The best quotes from the Oracle of Omaha and his right-hand man Charlie Munger from the 2018 Berkshire Hathaway shareholders meeting.

J. Dostie Jewelers
IndependentsNov 28, 2023
Maine Jeweler to Relocate After 76 Years

J. Dostie Jewelers will move from Lewiston to Yarmouth this spring.

Finks Jewelers new store
IndependentsNov 28, 2023
Fink’s Jewelers Opens 10th Store

It’s the company’s second location in Tennessee.

Mary Tyler Moore and a pair of Elsa Peretti Bone Cuffs
AuctionsNov 28, 2023
Mary Tyler Moore’s Jewelry Is Up For Auction

You can have this jewelry, why don’t you take it?

Original Miami Beach Antique Show 2024
Events & AwardsNov 28, 2023
The Original Miami Beach Antique Show Is Celebrating 60 Years

Next year’s milestone show will be full of educational programming and collaborations.

De Beers Metamorphosis high jewelry earrings
EditorsNov 27, 2023
10 Tips for Selling Diamonds This Holiday Season

Sales experts and a diamantaire share their best advice on how to send customers home with diamond jewelry.

Platinum Born new collection
CollectionsNov 27, 2023
See the New ‘Platinum Born’ Jewelry

The brand has released five new collections.

Frank Adams Jewelers
IndependentsNov 27, 2023
Frank Adams Jewelers Named ‘Family Business of the Year’

The Albany Business Review recently honored the 100-year-old company.

GIA Dr. John W. Valley
GradingNov 27, 2023
Dr. John W. Valley Retires from GIA Board of Governors

To honor his legacy, GIA has set up a scholarship in his name.

Stock image of police car with its lights on
CrimeNov 22, 2023
JSA Warns of Surge in Attacks on Jewelers on the Road

There have been eight attacks in the last month, spanning from a jewelry store parking lot in Rhode Island to highways in California.

Buddha Mama citrine bangle
TrendsNov 22, 2023
Amanda’s Style File: November Glow

These 15 pieces of jewelry celebrate November babies and the hues of citrine and topaz that reflect the colors of the season.

Columbia Gem House fundraiser
SourcingNov 22, 2023
Columbia Gem House Raises $12K for Wildlife

The money will help a nonprofit rehabilitate sea turtles.

×

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