Financials

Signet Sets Sights on Bridal Market as Q2 Sales Slip

FinancialsSep 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.

20220901_Signet header.jpg
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 … 

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. 

The Latest

Stock image of people shopping in a mall
SurveysApr 03, 2025
2025 Retail Sales to Grow More Slowly Amid ‘Uncertainty,’ Says NRF

The National Retail Federation expects retail sales growth to return to pre-pandemic levels as consumers continue to face inflation.

Tallulah Willis’ Engagement Ring
TrendsApr 03, 2025
Tallulah Willis Imbues Antique Engagement Ring With Magic

The 4-carat, old mine brilliant-cut diamond engagement ring was co-designed by Willis and New York City-based brand Karina Noel.

158.2-carat yellow diamond from Diavik
SourcingApr 03, 2025
Canadian Mine Produces 158-Carat Yellow Diamond

Rio Tinto unearthed the diamond at its Diavik mine in Canada’s Northwest Territories.

bench jeweler 1872x1052.png
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They Deserve

Bench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.

Buccellati Naturalia exhibition
CollectionsApr 03, 2025
Buccellati to Open Immersive Exhibition in Milan

The multisensory experience, open April 8-13, will feature the brand’s silver creations among dream-like scenes of natural landscapes.

Weekly QuizApr 03, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Jewelers of America logo
Policies & IssuesApr 03, 2025
Jewelers of America to Hold Webinar on Tariffs

The virtual event will take place April 7 at 3 p.m.

Bea Bongiasca Animali Tarallo Collection Royal Blue Tang Fish “Dory”
CollectionsApr 02, 2025
Bea Bongiasca’s ‘Tarallo’ Collection Expansion Is a Zoo

The pieces in “Animali Tarallo” portray animals from stingrays to elephants through portraits and interpretations of their patterns.

Facets-of-Fire-Difference-You-Can-See.jpg
Brought to you by
Natural Diamonds Should Mean More

Natural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.

Neiman Marcus Downtown Dallas store
MajorsApr 02, 2025
Neiman Marcus’ Dallas Flagship Will Remain Open, For Now

Parent company Saks Global said the iconic location will be open through the holiday season as it decides what to do with the space.

Natural color diamonds on display at Smithsonian National Museum of History
SourcingApr 02, 2025
Winston’s Collection of Natural Color Diamonds Now on Display in D.C.

Ronald Winston, son of Harry Winston, donated the diamonds to the Smithsonian National Museum of Natural History in Washington, D.C.

Punchmark
Events & AwardsApr 02, 2025
Punchmark to Host Client Workshop

The educational event will take place in Charlotte, North Carolina, this May.

Bergman Jewelers family
IndependentsApr 01, 2025
Bergman Jewelers in Omaha Closing After 137 Years

The independent jeweler first opened its doors in 1888.

QVC Group Inc. logo
MajorsApr 01, 2025
QVC Group to Cut 900 Jobs in the U.S.

The layoffs come amid the TV shopping channel’s efforts to restructure and focus on live shopping through social media.

Coconut Grove Jewelry & Watch Show
Events & AwardsApr 01, 2025
U.S. Antique Shows Adds Fall Show in Florida

The debut event will take place in Miami’s Coconut Grove neighborhood this fall.

The Jewelry Symposium (TJS)
Events & AwardsApr 01, 2025
TJS to Host Discussion on Jewelry Industry’s Labor Shortage

The roundtable will take place May 17 ahead of the trade show’s welcome dinner.

Peanuts x Monica Rich Kosann Collection Bracelets
CollectionsApr 01, 2025
Monica Rich Kosann Says ‘Good Grief’ in Peanuts Jewelry Collection

The “Peanuts x Monica Rich Kosann” collection features the comic strip’s classic vocabulary across 10 bracelet designs.

Graphic for What Do We Mean When We Say “Recycled” Gold webinar
Recorded WebinarsMar 31, 2025
Watch: What Do We Mean When We Say ‘Recycled’ Gold?

Three industry experts dive into the complexities of the material often marketed as an “ethical” alternative for metal in jewelry.

Mindi Mond Clarity Earrings
TrendsMar 31, 2025
Amanda’s Style File: Dripping in Diamonds

Diamonds are not only one of the most prominent gemstones, but the birthstone for those born in April.

Lashbrook ring
MajorsMar 31, 2025
Lashbrook Expands Into Luxury Golf Gifts With Acquisition

The Utah-based company known for making wedding bands has acquired Doubloon Golf.

Bulgari and LVMH Watches CEO Jean-Christophe Babin
WatchesMar 31, 2025
Bulgari CEO Jean-Christophe Babin Will Also Head LVMH Watches

The longtime luxury executive led one of LVMH’s watch brands, TAG Heuer, for 12 years before taking over Bulgari in 2013.

Surveillance footage of robbery
CrimeMar 28, 2025
2 Suspects Arrested in $1.7M Smash-and-Grab Robbery of NY Jewelry Store

Authorities said the robbers fled with jewelry and 70 Rolex watches, later taking pictures of themselves posing with big stacks of cash.

Nephrite and Jadeite by Heinrich Fischer, Richard W. Hughes
SourcingMar 28, 2025
19th-Century Jade Book Now Available in English

Lotus Gemology founder Richard W. Hughes has translated Heinrich Fischer’s 1880 book “Nephrit und Jadeit” from its original German.

LÖF The Valentine Ring
CollectionsMar 28, 2025
Piece of the Week: Löf’s ‘The Valentine’ Ring

The ring's design features contrasting lines influenced by work from architecture-inspired photographer Nikola Olic.

Eggs on a shelf
SurveysMar 27, 2025
Consumer Confidence Falls in March Amid ‘Gloomy’ Outlook

The Conference Board’s index fell as consumers continued to worry about the impact of tariffs, the labor market, and the price of eggs.

Richard Rainsford memorial ring
AuctionsMar 27, 2025
300-Year-Old Ring Linked to Witch Trial Judge Goes Unsold at Auction

However, two medieval jewels surpassed estimates at Noonans Mayfair’s recent jewelry auction in London.

Austin Butler
WatchesMar 27, 2025
Austin Butler Joins Breitling as Brand Ambassador

The Oscar-nominated actor debuted in the campaign for the new “Top Time B31” collection, which introduced Breitling’s Caliber B31.

ICA Congress Brazil 2025
SourcingMar 27, 2025
Susan Jacques, Gaetano Cavalieri to Headline 2025 ICA Congress

The Congress is scheduled to take place May 19-22 in Brasilia, Brazil.

×

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