FinancialsAug 26, 2022
Movado Sees ‘Continued Weakness’ in U.S. After Q2 Sales SlowFinancialsSep 01, 2022
Signet Sets Sights on Bridal Market as Q2 Sales Slip
Pre-wedding events, like a bridal shower, represent a $1.9 billion gifting opportunity, said the jewelry giant.
A 14-karat two-tone gold and lab-grown diamond anniversary band ($16,999) from the new Pnina Tornai collection at Signet Jewelers-owned banner Jared. Signet’s sales were down 2 percent year-over-year in the second quarter.
Akron, Ohio—Sales slipped in the second quarter for Signet Jewelers Ltd., with both total revenue and same-store sales down slightly.
The company already had lowered its full-year outlook last month following softening sales in July.
Still, the jewelry giant, which is the parent company of several large jewelry store chains including Zales, Jared and Kay Jewelers, is approaching the holiday season with confidence
Here are five things to know about its recent earnings report, released Thursday morning.
Signet had a muted second quarter.
For the quarter ending July 30, Signet’s sales totaled $1.8 billion, down 2 percent year-over-year against a record-setting second quarter in 2021.
Sales were up 29 percent compared with pre-pandemic fiscal 2020.
Same-store sales were down 8 percent year-over-year.
“Signet’s Q2 results are a strong reason to believe our core message,” said CEO Virginia Drosos on the company’s earnings call Thursday.
“We have the strategic clarity, structural advantages, financial flexibility, and winning culture to deliver consistent, reliable, and sustainable growth and meaningful shareholder value. Signet is strong and growing stronger.”
In North America, Signet’s banners include Zales and Kay Jewelers as well as Peoples in Canada.
Signet’s second-quarter sales in the region totaled $1.6 billion, down 2 percent year-over-year.
Same-store sales were down 9 percent, which Signet attributed to a higher average transaction value but a lower number of transactions.
Signet’s international banners include Ernest Jones and H. Samuels.
International sales totaled $111.6 million, down 15 percent year over-year, with same-store sales down 2 percent.
Signet lowered its fiscal outlook.
Signet announced last month alongside its Blue Nile acquisition news that it has lowered its fiscal guidance in response to sales trends.
“We saw sales soften in July as our customers have been increasingly impacted by rapid inflation, so we’re revising guidance to align with these trends,” Drosos said last month.
The company said it now expects fiscal year sales to be in the range of $7.60 billion to $7.70 billion, down from $8.03 billion to $8.25 billion.
Signet noted that its revised outlook does not account for the potential worsening of the macroeconomic environment or its pending acquisition of Blue Nile.
Looking to the third quarter, Signet expects revenue in the range of $1.46 billion to $1.49 billion, down slightly from last year’s Q3 total of $1.54 billion.
Related stories will be right here …
The company already had lowered its full-year outlook last month following softening sales in July.
Still, the jewelry giant, which is the parent company of several large jewelry store chains including Zales, Jared and Kay Jewelers, is approaching the holiday season with confidence
Here are five things to know about its recent earnings report, released Thursday morning.
Signet had a muted second quarter.
For the quarter ending July 30, Signet’s sales totaled $1.8 billion, down 2 percent year-over-year against a record-setting second quarter in 2021.
Sales were up 29 percent compared with pre-pandemic fiscal 2020.
Same-store sales were down 8 percent year-over-year.
“Signet’s Q2 results are a strong reason to believe our core message,” said CEO Virginia Drosos on the company’s earnings call Thursday.
“We have the strategic clarity, structural advantages, financial flexibility, and winning culture to deliver consistent, reliable, and sustainable growth and meaningful shareholder value. Signet is strong and growing stronger.”
In North America, Signet’s banners include Zales and Kay Jewelers as well as Peoples in Canada.
Signet’s second-quarter sales in the region totaled $1.6 billion, down 2 percent year-over-year.
Same-store sales were down 9 percent, which Signet attributed to a higher average transaction value but a lower number of transactions.
Signet’s international banners include Ernest Jones and H. Samuels.
International sales totaled $111.6 million, down 15 percent year over-year, with same-store sales down 2 percent.
Signet lowered its fiscal outlook.
Signet announced last month alongside its Blue Nile acquisition news that it has lowered its fiscal guidance in response to sales trends.
“We saw sales soften in July as our customers have been increasingly impacted by rapid inflation, so we’re revising guidance to align with these trends,” Drosos said last month.
The company said it now expects fiscal year sales to be in the range of $7.60 billion to $7.70 billion, down from $8.03 billion to $8.25 billion.
Signet noted that its revised outlook does not account for the potential worsening of the macroeconomic environment or its pending acquisition of Blue Nile.
Looking to the third quarter, Signet expects revenue in the range of $1.46 billion to $1.49 billion, down slightly from last year’s Q3 total of $1.54 billion.
Signet is all in on services.
Growing services revenue is a major goal of Signet’s “Inspiring Brilliance” growth plan.
“Warranty and repair services were drivers in the quarter and delivered nearly 7 percent growth [in the services category],” Chief Financial Officer Joan Hilson said on the call.
Its services, which boost in-store traffic, include Rocksbox, the jewelry subscription business Signet acquired last spring.
Rocksbox’s subscriber base increased 15 percent in the second quarter
The company is also offering some new services, including appraisals at select Kay Jewelers stores, a new insurance program at Jared, Kay and Zales, and the continued rollout of its Vault Rewards program.
At Jared, transaction values for reward program customers have increased by nearly $600 and repeat transactions are up 7 percent.
The program will expand to e-commerce and 1,800 Jared, Kay, and Zales stores by the holidays.
Signet is cornering the bridal market.
This year has been dubbed “the year of the wedding,” with 2.5 million weddings expected to take place in the United States in 2022.
The company saw growth in its bridal category, particularly in the $4,000 to $5,000 range, which saw revenue up 11 percent year-over-year, said Drosos.
Across all banners, purchases in the $10,000-plus range grew 15 percent in aggregate.
“Bridal is a big part of the story this quarter,” said Drosos, estimating the company’s bridal market share is at 30 percent.
Signet is looking to capitalize on the pre-wedding events that surround the big day, which it sees as a $1.9 billion opportunity in the U.S., noting these events are great for gifting.
Its in-house data shows that 43 percent of gifts given surrounding the wedding are jewelry gifts. The company is focused on making the most of all wedding opportunities, Drosos said.
Signet is planning targeted media campaigns and online gift guides as a way to appeal to this segment.
It also has launched Bridal by Rocksbox, a subscription box tailored specifically to brides and their wedding parties.
Signet is catering to both high-end and budget-strapped customers.
Signet is aiming to expand its customer base by catering to a wide spectrum of income levels.
“In this economic environment, we are both leaning into accessible luxury while also increasing our value equation for more economically challenged customers,” said Drosos.
For wealthier customers, Signet has added more higher price-point items and expanded its concierge and personalization services, like Jared Foundry.
As lower-income consumers feel the toll of inflation, the company is offering more affordable, value-focused options.
“A great example is how we’re leveraging lab-created diamonds for a bigger look for less in our fashion pieces,” she said.
More on Financials
The Latest
CollectionsApr 25, 2025
Sylvie Looks to Water in New Sculptural Bridal Collection“Shell Auranova” is the next generation of the brand’s bridal line, featuring half-bezel engagement rings with bold and fluid designs.
EditorsApr 25, 2025
Piece of the Week: Deborah Meyers Experience’s ‘The Birds’ EarringsDesigner Deborah Meyers created her birds from oxidized sterling silver, rose-cut diamond eyes, and Akoya Keshi pearl feathers.
SourcingApr 25, 2025
De Beers Sales, Production Fall in Q1 Amid UncertaintyThe company said it expects sightholders to remain “cautious” with their purchasing due to all the unknowns around the U.S. tariffs.
Brought to you by
Emerging Jewelers Accelerator Program Announces Second Cohort of Aspiring Jewelry Entrepreneurs Six new retail businesses were selected for the 2025 program, which began in January.
Supplier BulletinApr 24, 2025
Protect Your Customers and Your BusinessSponsored by the Gemological Institute of America
Weekly QuizApr 24, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. ExpansionSimon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99 A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.
Brought to you by
Protect Your Customers and Your BusinessThe risk of laboratory-grown diamonds being falsely presented as natural diamonds presents a very significant danger to consumer trust.
SourcingApr 24, 2025
Young Diamantaires Transition to NonprofitThe organization also announced its board of directors.
TrendsApr 24, 2025
Amanda’s Style File: So CharmingCharms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.
MajorsApr 23, 2025
Bulgari Doubles Size of Jewelry Factory in ItalyLocated in Valenza, the now 355,000-square-foot facility includes a new jewelry school that’s open to the public, Scuola Bulgari.
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ AwardPaola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to AuctionA platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.
MajorsApr 23, 2025
David Yurman’s New Campaign Stars Carmelo Anthony, Jaylen BrownThe basketball stars wear men’s jewelry from the “Curb Chain” collection.
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine JewelryThe Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry CollectionThe 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of MouthLilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth OfficerGCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow IndependentThe Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.
IndependentsApr 21, 2025
New York Jeweler to Close After 111 YearsVan Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise StrategyIndustry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.
Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host ConventionThe two organizations will hold the educational event together this fall in Mississippi.
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las VegasThe entrepreneur and “Shark Tank” star will share his top tips for success.
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ PendantThe Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated StoreThe jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day CampaignThe “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.
